The United States Department of Transportation (DOT) and the Federal Aviation Administration (FAA) have announced a combined investment of more than US$800 million to overhaul the country’s aging air traffic control (ATC) infrastructure. The funding, confirmed by US Transportation Secretary Sean Duffy, will be used to replace eight major control towers and Terminal Radar Approach Control (TRACON) facilities, while also modernizing federal contract towers across 41 airports in 24 states.
The initiative represents a strategic shift toward a “Brand New ATC System” aimed at addressing decades of infrastructure underinvestment that officials say has affected the reliability of the National Airspace System (NAS).
Strategic Infrastructure Replacement
A major portion of the funding—more than US$750 million—will go toward the complete replacement of eight critical ATC sites. According to the FAA, the selection was based on safety requirements and the operational efficiency needs of the national airspace system. The facilities designated for replacement include sites in:
The DOT noted that many of these facilities have been in service for decades and now face significant structural and operational limitations. “Under the previous administration, these facilities were neglected and allowed to deteriorate rapidly. We need a system and supporting infrastructure built for the future, which will allow us to attract the best talent for our air traffic controller workforce,” Secretary Duffy said.
The agency reported recurring issues such as failing HVAC systems, pest infestations, and leaking roofs, which have caused intermittent service disruptions at some sites. The new facilities will follow standardized, modern designs and include upgraded roofing, windows, and climate control systems, along with updated technical equipment such as automated voice recorders, advanced radios, and integrated lighting controls.
Modernization of Federal Contract Towers
Beyond FAA-operated facilities, the agency is allocating US$85.8 million for Federal Contract Towers (FCTs). These towers—about half of the nation’s control towers, with 265 sites active as of mid-2025—are operated by private contractors rather than FAA personnel.
The FCT grant program is structured to provide US$20 million annually over five years. Notable allocations include:
“These investments will replace aging infrastructure with modern, state-of-the-art towers and equipment that strengthen safety, improve reliability, and support the future of the National Airspace System,” said Bryan Bedford, FAA Administrator.
Addressing the Legacy System Backlog
The investment targets a significant backlog in FAA facilities. Data cited by a coalition of 26 aviation groups, including the Air Line Pilots Association (ALPA) and Airlines for America (A4A), shows that roughly one-quarter of the FAA’s more than 350 facilities are at least 50 years old. In addition, the 21 Air Route Traffic Control Centers (ARTCCs) that manage en-route traffic average 61 years in age.
The FAA’s modernization strategy includes building the first new ARTCC since the 1960s, with plans to eventually construct up to six. The agency’s Request for Services (RFS) outlines a move toward standardized designs, allowing the same ARTCC model to be replicated multiple times and increasing replacement capacity from roughly one facility per year to five or six annually.
Modernization is also being positioned as a response to the ongoing air traffic control staffing shortage, which exceeds 3,000 controllers. By consolidating facilities and introducing greater automation, the FAA aims to reallocate resources more efficiently.
Industry Partners and Future Projects
The US$800 million announcement forms part of a broader US$12.5 billion “down payment” from Congress to modernize aviation technology. Several major defense and technology companies are already involved in the program:
Future plans include a potential Common Automation Platform (CAP) to unify terminal and en-route tracking systems. The FAA is also evaluating the “SMART” (Strategic Management of Airspace Routing Trajectories) initiative. According to Frank Matus, Director, UAS Integration at Thales—one of the reported bidders alongside Palantir and Air Space Intelligence—the system would use artificial intelligence to forecast weather and traffic patterns up to six months in advance.
“The system would not separate or deconflict aircraft. Rather, it would identify scheduling and traffic bottlenecks, helping improve ATC staffing decisions and reduce disruptions,” Matus said.
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