US Airspace Revamp Progresses, But AI Funding Lags

US Transportation Secretary Sean Duffy and Federal Aviation Administration (FAA) Administrator Bryan Bedford outlined key milestones in the multibillion-dollar modernization of the National Airspace System (NAS) during the Modern Skies Summit on April 21. While officials confirmed the project remains on a fast-track timeline, they cautioned that current funding is largely concentrated on physical infrastructure, leaving a critical gap for the software and artificial intelligence (AI) systems required to complete the digital transformation.

The modernization effort, described by Duffy as aviation’s “biggest overhaul since the Jet Age,” aims to replace the nation’s aging air traffic control (ATC) infrastructure within a two-and-a-half-year window. The project is currently backed by US$12.5 billion in funding approved by Congress in July 2025, though Duffy estimated the total cost will exceed US$30 billion.

Infrastructure Deployment and Technical Milestones

Working with prime integrator Peraton, the FAA has reported rapid progress in upgrading physical systems across 4,600 sites. According to summit data, nearly 50% of the 5,400 legacy copper wire connections in the ATC network have been replaced with fiber-optic infrastructure.

“We have already replaced 50% of the old wires, moving from copper to fiber. Putting fiber in the ground is not enough. If we want to actually move into a digital National Airspace System, we need a robust data network,” Duffy said.

Additional upgrades include:

• Radio systems: About 250 of 1,600 sites converted from analog to digital
• Radar infrastructure: Upgrades completed or underway at more than 90 sites, supported by contracts with RTX Corporation, Indra Group and Saab
• Tower digitalization: 17 of 89 control towers transitioned to electronic flight data systems
• Surface awareness: Deployment of tracking tools at 54 airports to improve low-visibility operations

Shift Toward AI and Predictive Analytics

A central theme of the summit was the need to replace legacy software systems, which Duffy compared to “Windows 95 or Windows XP.” The FAA is evaluating AI-driven tools and predictive analytics to move air traffic management from a reactive to a proactive model.

Bedford noted that simulations based on historical data are being developed to better organize flight flows in advance, allowing controllers to focus on exceptions rather than routine congestion.

Despite progress, Duffy emphasized that funding constraints are limiting software deployment. While the Department of Transportation has engaged vendors such as Palantir Technologies, Thales Group and Airspace Intelligence, the current budget allocation is largely restricted to hardware and facilities.

Industry and Executive Support

The initiative has received backing from the Modern Skies Coalition, a group representing nearly 60 aviation organizations.

Chris Sununu, President and CEO, Airlines for America, said the progress reflects a coordinated industry effort despite external challenges.

Similarly, Ed Bolen, President and CEO, National Business Aviation Association, described the project as a “once-in-a-lifetime opportunity” to modernize US aviation infrastructure, while noting that additional investment will be required.

Funding Outlook and Future Requirements

The US ATC system currently manages around 45,000 flights and 2.9 million passengers daily. To sustain the pace of modernization, Donald Trump has requested an additional US$4 billion in the 2027 federal budget for facilities and equipment.

Officials indicated that future funding must prioritize software development, including cloud migration, a unified automation platform, and a new enterprise network architecture. The Modern Skies Coalition has urged Congress to secure the next tranche of funding to ensure that advanced software systems can fully support the newly deployed hardware infrastructure.