The United States is embarking on a significant modernization of its air traffic control (ATC) system, a move prompted by the growing demands of air travel. The current infrastructure, plagued by delays and outdated technology, is set to undergo a comprehensive upgrade through a contract valued at up to $32.5 billion. This initiative aims to enhance safety, reduce flight disruptions, and ultimately support the reliability of air travel across the nation.
Modernization Contract Awarded
On March 15, 2024, US Department of Transportation Secretary Sean Duffy and Federal Aviation Administration (FAA) Administrator Brian Bedford announced that a multi-billion-dollar contract has been awarded to Peraton, marking the largest aviation infrastructure project in decades. The contract includes an initial payment of $12.5 billion, part of the funding allocated in President Donald Trump’s “One Big Beautiful Bill.” The remaining funds will require approval from Congress.
Duffy expressed confidence that the project would be completed by the end of 2028. The contract features a unique performance-based structure that rewards Peraton for timely delivery while imposing penalties for delays. As the prime integrator, Peraton will lead the modernization efforts, overseeing planning and operations across multiple facilities.
The FAA first sought proposals for ATC solutions in August 2025. Peraton was selected for its extensive experience in complex technology integration and previous successful collaborations with government entities. Competing firms, including IBM and Parsons Corporation, also submitted proposals.
Addressing Systemic Challenges
The FAA has highlighted urgent issues with the current air traffic control system, noting that in 2025, flight delays due to ATC equipment failures tripled compared to averages from previous years. Significant incidents, such as blackouts at the Philadelphia TRACON facility, were attributed to aging infrastructure, including malfunctioning copper wiring used throughout the system.
The modernization initiative will replace not only outdated equipment but also enhance overall capacity by introducing new technologies. Planned upgrades include installing 5,170 high-speed network connections, 27,625 new radios, and upgrading 612 radar systems. Enhanced capabilities are expected to streamline operations at airports and reduce the frequency and duration of delays.
Retired air traffic controller James Gillman stated, “Peraton may be the breakthrough needed to finally get the connectivity and modernization that we’ve talked of for many, many decades. Now that the technology exists, let’s make an effort to take advantage of it.”
Despite the optimism surrounding the project, there are concerns about the ambitious 2028 timeline. Retired controller Steve Meitz expressed skepticism, noting, “I hope to live long enough to see this come to fruition. Three years is a pipe dream. The FAA’s track record is far from stellar.”
Moreover, the sheer scale of the US air traffic control network presents logistical challenges. Updating numerous facilities simultaneously is a complex task, and delays, particularly related to funding, could hinder progress. While $12.5 billion is currently allocated, Congressional approval is necessary for the remaining funds, which are estimated at around $20 billion.
The Path Forward
The modernization project aims not only to upgrade existing equipment but also to enhance ATC capabilities and efficiency. Key improvements include transitioning to Internet Protocol networks and establishing a new consolidated Air Route Traffic Control Center, alongside enhanced weather monitoring capabilities, particularly in Alaska.
While the equipment upgrades are a critical step, the FAA also faces ongoing staffing challenges. Many air traffic controllers work long hours, often exceeding standard workweeks, which can exacerbate operational issues. Following a recent government shutdown, the FAA initiated a plan to hire 8,900 new controllers by 2028, including partnerships with universities to enhance training programs.
Despite the promise of modernized technology, infrastructure constraints at many airports pose additional challenges. The physical layouts of older airports, particularly in cities like New York, limit the ability to increase flight capacity, complicating efforts to adapt to rising demand.
The push for modernization and increased flight capacity reflects a broader recognition of the urgent need to address systemic issues within the US aviation sector. As the FAA and DOT move forward with these ambitious projects, the focus will remain on ensuring safety, reliability, and long-term sustainability in American aviation, independent of political influences.
