DOT chief Sean Duffy has big plans but needs billons more dollars to complete the ATC project.
US Department of Transportation (DOT) secretary Sean Duffy is seeking additional funding to complete software upgrades as part of the agency’s overhaul of the air traffic control (ATC) system.
ATC modernisation “is going to take us two-and-half-years — only two-and-a-half-years — to do this build with $12.5 billion”, Duffy said at an industry gathering in Washington, DC on 21 April. “We are going to need more money for the software side of this build.”
To date, the Federal Aviation Administration and its prime integrator Peraton have replaced nearly half of 5,400 copper wire connections across the USA’s ATC system, installed new radios at 250 of 1,600 sites and replaced paper strips with new terminal flight data management systems at 17 of 89 control towers.
Radar upgrades, including new terminal radars and other critical radar systems, are also underway or complete at more than 90 sites around the country.
Chris Sununu, president of trade group Airlines for America (A4A), describes the progress in just four to five months as “really exciting”.
The ATC modernisation work is funded by $12.5 billion appropriated by Congress in the One Big Beautiful Bill in July 2025. The funds are primarily earmarked for physical upgrades, including new telecommunications equipment and radars, and facilities updates.
The full ATC overhaul as envisioned by the DOT is estimated to cost more than $30 billion.
Earlier in April, President Donald Trump in his 2027 budget proposal requested an additional $4 billion from Congress for the ATC modernisation work. The funds would be earmarked for facilities and equipment.
The DOT contracted RTX and Indra Group in January to supply 612 surveillance radars, and Saab in February to replace surface movement radar systems at 44 airports.
“Putting fibre in the ground isn’t enough,” says Bryan Bedford, the FAA administrator, at the 21 April event. “If we want to actually move into a digital [National Airspace System], we need a robust data network system.”
The software needs broadly include moving the NAS into the cloud, installing a common automation platform and a new enterprise network system, he says.
Neither Bedford nor Duffy provide additional specifics about the software needs or plans.
Duffy, when asked to elaborate about comments made earlier this month regarding software related to “how flights are managed”, says the DOT has engaged three vendors but declined to name them. He instead highlights how the FAA is hamstrung from using most of the $12.5 billion appropriated for ATC modernisation for anything other than the physical upgrades.
Palantir, Thales and Airspace Intelligence (ASI) are reportedly the three vendors working on the AI-powered tool, The Air Current reports.
Other firms, including Collins Aerospace parent RTX, are pitching themselves and their suite of ATC technologies for significant pieces of the modernisation programme.
The post US transportation secretary touts ATC modernisation progress, pushes for more funding first appeared on FlightGlobal.