Home Bloomberg.com Duffy Says Air Traffic Overhaul to Cost Tens of Billions of Dollars

Duffy Says Air Traffic Overhaul to Cost Tens of Billions of Dollars

May 7, 2025

Transportation Secretary Sean Duffy said Tuesday that his proposal to overhaul the US’s air traffic system, which he plans to unveil May 8, will cost “tens of billions” of dollars.

Urgency around upgrading the Federal Aviation Administration’s aging system has grown after a radar and radio outage early last week at the Philadelphia facility that guides planes to and from Newark Liberty International Airport left controllers temporarily unable to communicate with or see dozens of aircraft flying through the congested airspace. The moment was a terrifying one for controllers that resulted in several taking trauma leave.

Duffy, who has been teasing his plan for weeks, has said the country needs a new air traffic control system, including new radar technology, to prevent future equipment breakdowns.

The secretary has also said Congress will need to provide the money for the modernization plan. Republicans on the House Transportation and Infrastructure Committee recently advanced legislation that would provide the FAA with $12.5 billion for portions of the overhaul, including upgrades to telecommunications, radar and facilities.

For years, government watchdogs and the aviation industry have sounded the alarm on the state of the air traffic control system.

The US Government Accountability Office warned last year that immediate action is needed, citing a 2023 FAA assessment that found 76% of the agency’s traffic systems were either unsustainable or potentially unsustainable. In 2024, the FAA said the average age of control towers was 40 years and the majority of radar systems were approaching that age as well.

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