FAA Faces $574 Million Shortfall in First Phase of Air Traffic Control Overhaul
The FAA needs an additional $574 million from Congress to complete the first phase of its $10.6 billion air traffic control modernization, according to a new GAO report.
The Federal Aviation Administration is short of the funding needed to finish the initial stage of its air traffic control modernization program and has yet to fully account for the long-term costs of running the new system, a government review has found.
The Government Accountability Office said in a report released Monday that the FAA has not completed a comprehensive assessment of operating expenses for the upgraded infrastructure, nor has it established a detailed timeline for wrapping up the reforms.
"In essence, the FAA is buying delivery speed at the risk of cost uncertainty and potential disruptions," the GAO said, warning that these conditions raise the odds of the agency repeating past patterns of budget overruns, schedule slips, and missed performance goals.
Congress has already appropriated $9 billion for the first phase of the initiative, which is projected to cost $10.6 billion in total. The FAA is drawing $1 billion from its current-year budget, leaving a gap of $574 million that would require additional legislative funding, according to the GAO.
The findings underscore the financial and managerial challenges facing the agency as it seeks to replace aging equipment and streamline operations across the national airspace system.