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Administration urges $12.5B start for air‑traffic modernization, says permitting reform could speed a 3–4 year rollout

U.S. Department of Transportation / Federal Aviation Administration press event · June 3, 2025
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Summary

Secretary Duffy told reporters the administration expects an initial roughly $12.5 billion investment to begin modernizing aging air‑traffic systems and estimated a 3–4 year phased timeline, contingent on permitting reform and congressional funding.

At the Newark briefing Secretary Sean Duffy said the administration has proposed roughly $12.5 billion to begin an overhaul of aging air‑traffic technology and that the project’s timeline depends heavily on permitting and congressional funding.

“There's 12 and a half billion dollars, to start this project,” Duffy said, characterizing the effort as a multi‑year American infrastructure build. He urged full funding up front and said prior FAA projects were hampered when agencies received only small tranches of funding.

Duffy said the administration hopes the program can be completed in three to four years depending on permitting reform: “If I get the permitting reform, I think we're closer to 3. If we don't, we're closer to 4.” He compared the priority level and management approach to how the Department of Defense executes major projects, arguing the administration will treat modernization as a high‑priority program and seek broader industry partnerships.

Context and constraints: Duffy emphasized that the project will be rolled out in phases — some airports and airspaces will receive upgrades earlier than others — and that FAA risk analyses will guide safety device deployments. He also said Congress would need to provide sustained support for the program and that permitting rules that slow fiber and related site work must be addressed for rapid deployment.

What officials did not announce: The briefing did not include new appropriations, a final legislative text, or a purchase order schedule. The $12.5 billion figure was presented as the administration’s initial funding ask to begin work; Duffy did not provide a bill number or enacted authority during the briefing.

Next steps: Officials said they will continue to work with Congress and industry partners to secure funding, address permitting barriers and phase upgrades to airspace and airport systems over multiple years.