Aviation stakeholders praise the ATC overhaul in Trump's budget law

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Aviation stakeholders praise the ATC overhaul in Trump's budget law
Photo Credit: Ersin Ergin/Shutterstock

Aviation industry stakeholders are praising the budget and policy bill signed by President Trump on July 4, primarily due to the $12.5 billion it provides for an overhaul of air traffic control (ATC) systems

However, those same stakeholders are already noting that substantially more funding will be needed in the coming years to complete the ambitious ATC transformation, especially within the four-year timeline that Transportation Department Secretary Sean Duffy has laid out.

Among the advocacy groups quick to praise the bill were Airports Council International -- North America, Airlines for America and the Modern Skies Coalition -- a group of 50-plus stakeholders that formed for the purpose of supporting an ATC overhaul.

"This is a meaningful first step toward replacing outdated technology and aging facilities with the tools needed to keep our skies safe and efficient for decades to come," the Modern Skies Coalition said. 

The group, which has estimated that completing the ATC overhaul will cost at least $31 billion, also said that it "remains committed to working with lawmakers, regulators and industry partners to ensure that the system is fully staffed and that this investment translates into real progress, guaranteeing the United States will continue to have the safest aviation system in the world."

The largest ATC components in the budget bill are $4.75 billion for ATC telecommunications infrastructure and $3 billion for radar systems replacement. Another $1.9 billion would go toward constructing a new air route traffic control center to handle midflight air traffic, above 20,000 feet. 

Airlines for America CEO Nick Calio was effusive in his praise of the White House. 

"Few people have had the gumption to take on the vast undertaking of modernizing our nation's complex ATC system, but President Trump and Secretary Duffy addressed the dire need quickly and are acting with urgency," Calio said. 

But he, too, stressed that more money will be needed. 

"We look forward to working with the administration as we continue to advocate for additional funding for staffing and technology to make President Trump's vision of a new golden age of air travel a reality." 

Aviation stakeholders have been calling for faster and more effective action in upgrading the ATC system for decades as the multibillion-dollar NextGen program that began in 2007 under-delivered and was implemented haltingly. But their calls gained more traction and vocal support from Trump and Duffy following the January collision of an Army helicopter with an American Airlines regional jet near Washington D.C. ATC failures this spring that led to ATC outages and flight delays at Newark Airport were also a rallying cry.

The budget bill also won praise from airports for the more than $6.1 billion it includes for hiring and for bonuses for Customs and Border Protection personnel. 

"Funding 5,000 additional CBP officers will improve the processing experience for passengers and cargo moving through our airports, seaports, and land ports," Airports Council International -- North America said. 

The bill also has other impacts on aviation. Notably, it extends by two years, until 2029, a tax credit for of up to $1.75 for producers of sustainable aviation fuel. 

The credit survived despite the Trump administration's hostility to climate-change initiatives, due in large part to support from farmers. 

Farmers got an additional boost, receiving higher tax credits for the production of sustainable aviation fuel from corn ethanol and soybean oil.

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