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Wed, Jul 02, 2025

Senate Passes Reconciliation Bill With $12.5B For ATC Modernization

House Must Reaffirm Before Getting President Trump’s Signature

The U.S. Senate passed the budget reconciliation bill, aka President Trump’s One Big Beautiful Bill, that contains $12.5 billion for the modernization and upgrading of the FAA’s air traffic control system. The lower chamber of Congress needs to reaffirm the legislation as modified by the Senate before getting to President Trump’s desk.

The megabill passed in a 51-50 vote, with Vice President JD Vance casting the deciding vote. As most readers know, the debate over the bill has been contentious to say the least. It contains some massive spending cuts but also increases for border security and defense spending.

For the aviation industry, the key number is the $12.5 billion for revamping the ATC system. It is nowhere near what ultimately will likely be required, but it’s a good start to get some important elements accomplished as soon as possible.

Airlines for America (A4A) said in a statement, “We are grateful that the Senate understands the urgent need to overhaul our nation’s air traffic control (ATC) system and included $12.5 billion in their reconciliation package for that cause. This is an important first step as Secretary Duffy works to implement President Trump’s vision of a brand new, state-of-the-art system.”

A4A also said, "This funding is a vital down payment on updating the system that guides 27,000 flights, 2.7 million passengers and 61,000 tons of cargo every day."

FMI:  www.transportation.gov/

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