# Congress Proposes $30 Billion Air Traffic Upgrade

S.5572, the proposed Modern Skies Act, would allocate $30 billion to U.S. air traffic control and airport projects, with only 40% designated for air traffic control and the funding described as borrowed rather than offset. The bill is a proposal, not an enacted appropriation or contract award. Separately, a Government Accountability Office review identified weaknesses in the FAA’s Brand New Air Traffic Control System effort, including cost estimates, integrated scheduling, requirements definition, and contractor oversight. A reported increase in a U.S. Space Force launch program—from $5.6 billion to $17 billion—points to a separate potential expansion in launch procurement demand.

- Aviation contractors should distinguish the proposed funding from funded opportunities; the Modern Skies Act’s legislative status will determine whether its airport and ATC project funding proceeds.
- The GAO findings indicate execution and contractor-management risks for FAA modernization work, particularly around cost, schedule, requirements, and oversight.
- Companies pursuing FAA work can account for those identified management weaknesses in their delivery, scheduling, requirements-management, and cost-control plans.
- Launch providers, including potential heavy-lift bidders, may find the reported Space Force program expansion relevant to market planning, though the signal does not identify a specific solicitation or award.

**Jurisdictions:** federal
**Industries:** Transportation, Defense & Military
**Topics:** Grants & Funding, Digital Infrastructure
**Published:** October 16, 2026

### Government Entities
- Federal Aviation Administration (FAA)
- Government Accountability Office (GAO)
- U.S. Congress
- U.S. Space Force (USSF)

### Vendors
- SpaceX (Contractor; considering development work with the Space Force on a larger-cargo version of Starship)
- United Launch Alliance (Potential bidder in an expected heavy-lift launch vehicle competition)
- Blue Origin (Potential bidder in an expected heavy-lift launch vehicle competition)

### Sources
- [The $30 billion air traffic control modernization plan that isn't](https://reason.org/aviation-policy-news/the-30-billion-air-traffic-control-modernization-plan-that-isnt) - Reason Foundation