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US lacks funding to complete first phase of air traffic control reforms, report finds

By Thomson Reuters Sep 14, 2026 | 9:43 AM

By David Shepardson

WASHINGTON, Sept 14 (Reuters) – The Federal Aviation Administration needs more funding from Congress to complete phase one of a $10.6 billion air traffic control reform plan and has underestimated the total ​costs of operating the new system, according to a government ‌report released on Monday.

The Government Accountability Office said the FAA had not fully assessed the costs of operating the new system or set a detailed schedule for completing reforms.

“In essence, the FAA is buying delivery speed at the risk of cost uncertainty and ‌potential disruptions,” ​the GAO report said, adding, “these risks increase the ⁠likelihood of FAA repeating ⁠its history of cost overruns, delays, and unmet performance targets.”

Congress previously approved $9 billion for ATC reforms in the first phase. The FAA is also using $1 billion from its current-year budget and needs another $574 million, the ​GAO said. The price tag for telecommunications upgrades has jumped $4.75 billion to $5.91 billion, GAO said.

FAA Administrator Bryan Bedford is set to testify on Tuesday ⁠before Congress on the effort and its ⁠plan to begin deploying a software-based program to try ​to avoid flight delays.

The GAO said the FAA has over 11,000 separate projects ​in phase one of the $10.6 billion reform plan.

The FAA said in a ‌letter to the GAO that it is committed to using best practices to oversee the project that it says “remains largely on plan,” including over 95% of specific tasks.

The FAA’s existing air traffic control systems are “severely outdated, underperforming, ⁠and unsustainable. This aging and unreliable technology has contributed to an increase in aviation incidents,” GAO said.

Replacing air traffic control tower voice switches carries the highest ⁠risk because of the ‌size of the sites and airspace it controls, the ⁠age of technology and need to operate new and ​old ‌voice switches simultaneously.

The GAO noted that the FAA released ​its first ⁠comprehensive plan for improving air traffic control services in 1982 and has since suffered a series of cost overruns and delays while delivering limited results.

The FAA in December tapped Peraton, which is owned by Veritas Capital, to oversee the modernization effort, awarding it a $1.5 billion contract.

(Reporting by David ShepardsonEditing by Nick Zieminski ​and Bill Berkrot)