On Monday afternoon, U.S. Transportation Secretary Sean Duffy and FAA Administrator Bryan Bedford announced what they dubbed a “long overdue” shake-up to the aviation regulator’s structure.
Duffy and Bedford said the “comprehensive” overhaul—which they described as the largest in the FAA’s history—will not result in reductions in force (RIFs). Instead, it creates three new offices, makes certain leadership roles permanent, and supports the agency’s three-year, multibillion-dollar Brand New Air Traffic Control System (BNATCS) project.
“It’s important that we have the right people in the right places to do the best work possible,” Bedford said in a statement. “These actions will put permanent leaders in place who embrace innovation, share safety data and insights freely, and are focused on deploying a brand-new air traffic control system, all while integrating key innovation technologies into the new National Airspace System [NAS].”
The reorganization comes as the FAA tackles what could be the largest undertaking in its history. The BNATCS effort intends to replace hundreds of outdated radars and copper wiring, install thousands of new radios and voice switches, shift analog communications to digital, and build new towers, centers, and weather stations.
The project is already well underway. Hundreds of radios, electronic flight strips, and surface awareness systems have been installed nationwide, and about one-third of copper wiring has been replaced with fiber, satellite, or wireless systems.
Congress has allocated $12.5 billion to BNATCS. Though Duffy is seeking more funding—in the range of $31.5 billion—he said Monday’s move will help accelerate the effort.
“Funding is only one piece of the puzzle,” he said. “With these critical organizational changes, the FAA can streamline the bureaucracy, encourage innovation, and deliver a new air traffic control system.”
What’s New at the FAA?
Close to two years after the FAA Reauthorization Act of 2024, the agency has added new offices called for by Congress.
An Aviation Safety Management System (SMS) Organization, for example, will create a single SMS and risk management strategy for the entire FAA, consolidating functions it currently performs across five different units. Duffy and Bedford said the centralized SMS will allow personnel to share internal safety data more freely.
A new Airspace Modernization Office, meanwhile, will directly help manage the BNATCS effort, handling planning, research and development, systems engineering, portfolio management, and other tasks. Peraton, the project’s prime integrator—essentially a general contractor—is leading the effort. But it faced scrutiny from Congress after being selected over a competitor, Parsons Corp., with deeper ties to the FAA.
Duffy and Bedford also unveiled an Advanced Aviation Technologies Office that will take the lead on integrating advanced air mobility (AAM) technologies, from small drones to electric air taxis and even supersonic jets. That aligns with the DOT’s December release of an AAM National Strategy—which FLYING unpacked here—and a 2025 White House order that seeks to cement U.S. leadership in AAM innovation.
Under the revamped organizational structure, Bedford’s office will supervise the FAA’s Administration and Finance Office, Policy and Legal Office, and Air Traffic Organization, as well as the new SMS and Airspace Modernization offices.
The Policy and Legal Office now houses FAA rulemaking and regulatory offices, another measure called for by Congress in 2024. Personnel managing finance, information and technology, and human resources were also consolidated within the Administration and Finance Office.
Deputy Administrator Chris Rocheleau will oversee the new Advanced Aviation Technologies unit, in addition to the Office of Commercial Space Transportation, Security and Intelligence Organization, and Aviation Safety Oversight and Certification Organization.
