The U.S. House of Representatives passed the revised Senate version of the budget reconciliation bill, including $12.5 billion in funding for new and upgraded air traffic control (ATC) infrastructure as well as fast-tracking some NextGen capabilities.
Among the large chunks of funding in the ATC upgrade package, the final bill appropriates $4.7 billion for telecommunications infrastructure modernization and systems upgrades, $3.0 billion for replacing radar systems, and $1.9 billion for “necessary actions to construct a new air route traffic control center (ARTCC),” the legislation said. The ARTCC approval stipulates that no more than 2% can be spent for “planning and administrative purposes,” and, crucially, that the new center has at least three of the existing 21 centers combined into it.
Other initiatives called out in the bill as part of the ATC package include $550 million for “unstaffed infrastructure sustainment and replacement,” and $500 million for runway safety and airport surveillance projects.
The bill also carves out $300 million for a variety of NextGen initiatives, giving the FAA and the U.S. Transportation Department (DOT) 180 days to “evaluate and expedite the implementation of” several NextGen programs and capabilities. Among them: performance-based navigation (PBN), data communications, terminal flight data manager, and aeronautical information management.
Under the new requirements, regulators have three years to “fully implement” PBN procedures “for all terminal and enroute routes, including approach and departure procedures for covered airports,” the legislation said. The PBN effort must prioritize specific procedures, including trajectory-based operations, optimized profile descents, multiple airport route separation, and converging runway display aids.
The FAA also must work with industry on equipage requirements, and work with stakeholders and the NextGen Advisory Committee to establish PBN procedures “as a primary means of navigation to further reduce the dependency on legacy systems within the national airspace system.” The plan should include a “two-year implementation plan” to “further incentivize” accelerated equipage rates among air carriers.
The NextGen initiatives were laid out in the 2024 FAA reauthorization bill. The budget bill references the reauthorization bill directly.
Congress also allocated $50 million for remote towers—another initiative from the 2024 FAA bill—but has no funding specifically designated for replacing old towers via the Contract Tower Program.
Beyond the ATC funding that bolsters the DOT’s ambitious plan to upgrade ATC infrastructure, the new legislation permanently extends bonus depreciation for qualified assets, including many aircraft, and provides a way for 529 college funds to be used for other qualified career-development education, including pilot and mechanic training.
Industry groups lauded the so-called One Big Beautiful Bill’s aviation-specific initiatives.
“The funding included in the One Big Beautiful Bill is a critical down payment as the administration works to overhaul our ATC infrastructure,” Airlines for America (A4A) said.
The National Air Transport Association (NATA) echoed A4A’s praise of the ATC funding and other key provisions.
“This permanent extension of bonus depreciation recognizes the vital role aircraft play in supporting local economies and national mobility,” NATA President and CEO Curt Castagna said. “By removing uncertainty around tax planning, Congress has empowered aviation businesses to reinvest, grow jobs, and expand access to on-demand transportation and critical services across the country. In addition, the extension of 529 education plan eligibility to federal certifications will remove another barrier of entry for future professional pilots and aircraft mechanics and is yet another signal that our industry is a source of highly skilled, well-paying American jobs.”
The final bill differed from the one approved by the House in May thanks to changes introduced by the Senate, creating some last-minute headwinds. But Republicans convinced enough of their party’s holdouts to accept the Senate version to squeak by in a 218-214 vote.
The bill’s next stop is 1600 Pennsylvania Avenue, where President Trump is expected to sign it into law on July 4.
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