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News Update

Duffy Ups DOT’s ATC Modernization Ask to $30B

New funding appeal is more than what officials previously requested or said they would be seeking.

Jack Daleo
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Edited By: Travis Tingle
U.S. Transportation Secretary Sean Duffy stands at a podium
Transportation Secretary Sean Duffy seeks $30 billion for ATC modernization on top of the $12.5 billion that Congress already allocated for the effort. [Credit: Joshua Sukoff/Shutterstock]
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Key Takeaways:

  • The Transportation Department is requesting an additional $30 billion for air traffic control (ATC) modernization, elevating the total cost for the "Brand New ATC System (BNATCS)" to $42.5 billion.
  • This funding aims to upgrade ATC facilities, infrastructure, and software, including the rollout of the AI-based Strategic Management of Airspace, Routes and Trajectories (SMART) platform.
  • The increased request is driven by cost and schedule concerns, recent telecommunications failures, and the urgent need to prevent higher air travel delays and cancellations.
  • Officials warn against underfunding, citing the limited success of the previous NextGen modernization effort and the current budget's inadequacy to do more than sustain legacy systems.
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The Transportation Department is upping its funding request for air traffic control (ATC) modernization by several billion dollars as the effort faces cost and schedule concerns.

Reuters reported Tuesday that DOT Secretary Sean Duffy said the agency is “going to ask Congress for $30 billion.” Congress in 2025 allocated $12.5 billion toward the project, known as the Brand New ATC System (BNATCS), and Duffy’s appeal would put the total cost at $42.5 billion.

Jack Daleo

Jack is a staff writer covering advanced air mobility, including everything from drones to unmanned aircraft systems to space travel—and a whole lot more. He spent close to two years reporting on drone delivery for FreightWaves, covering the biggest news and developments in the space and connecting with industry executives and experts. Jack is also a basketball aficionado, a frequent traveler and a lover of all things logistics.

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