The Federal Aviation Administration (FAA) oversees the world’s busiest airspace, guiding over 45,000 flights daily with a safety record that’s the envy of the globe. Yet, beneath this veneer of competence lies a ticking time bomb: an outdated air traffic control (ATC) system plagued by aging infrastructure, chronic underfunding, and bureaucratic inertia. In January 2023, a single system failure grounded flights nationwide, causing 1,300 cancellations and 10,000 delays. Worse, recent near-misses and a fatal midair collision in Washington, D.C., in January 2025 signal that lives are at stake. As conservatives, we champion efficient government and prioritize public safety. It’s time to demand the federal government redirect the $20.2 billion in annual airline tax revenue to fully fund the modernization of the ATC system before more lives are lost.
The Crisis in Our Skies
The FAA’s ATC system is a patchwork of legacy radar systems and half-implemented modern technologies. A 2024 Government Accountability Office (GAO) report revealed that 51 of 138 ATC systems are “unsustainable,” with outdated functionality, scarce spare parts, and modernization plans delayed until the 2030s. These relics contribute to inefficiencies, delays costing the economy over $20 billion annually, and growing safety risks. The Next Generation Air Transportation System (NextGen), launched in 2003 to transition to a satellite-based, digital system, is years behind schedule. By 2022, the FAA had spent $14 billion on NextGen, yet the GAO estimates an additional $15–$21 billion is needed Ascertainable evidence suggests that the completion of NextGen could stretch beyond 2030, leaving our skies vulnerable.
This isn’t just about inconvenience—lives are on the line. The 2023 outage and 2025 collision underscore the human cost of inaction. Conservatives know that government must prioritize core functions like public safety over bloated programs. The ATC system’s decay is a failure of misplaced priorities and red tape, and it’s time to act.
A Ready Funding Source: Airline Taxes
The solution is right in front of us. In fiscal year 2025, the Airport and Airway Trust Fund (AATF), funded primarily by airline taxes, is projected to collect $20.2 billion in excise tax revenue, with $14.4 billion from passenger taxes (7.5% ticket tax, segment fees, and international arrival/departure taxes) and the rest from cargo, fuel, and other aviation taxes. This revenue, intended to support FAA operations, facilities, and modernization, is often diverted to competing priorities like airport grants and general fund spending. At the end of FY 2024, the AATF had a cash balance of $18.14 billion—money sitting idle while our ATC systems crumble.
Redirecting this $20.2 billion annually to ATC modernization could transform the system. The FAA’s 2017 estimate pegged the remaining cost of NextGen at $14.8 billion through 2025, with total modernization costs, including radar and facility upgrades, potentially reaching $36 billion through 2031. The FAA’s 2025 budget requests $8 billion over five years ($1.6 billion annually) for facility replacement and radar modernization, a drop in the bucket compared to the need. By allocating the full $20.2 billion AATF revenue for three years—totaling $60.6 billion—the federal government could not only complete NextGen but also replace 377 critical radar systems, modernize over 20 ATC facilities, and deploy advanced technologies like digital communications and trajectory-based operations (TBO).
This proposal aligns with conservative principles: targeted spending, fiscal responsibility, and prioritizing safety. Unlike wasteful government programs, ATC modernization is a core federal function with tangible returns. NextGen’s Performance-Based Navigation has already saved airlines millions in fuel at airports like Seattle-Tacoma, and full implementation could save $0.9 billion annually in passenger time and fuel costs. These savings benefit businesses, travelers, and the economy, reducing the need for future bailouts or subsidies.
Redirecting airline taxes requires no new levies—a win for taxpayers. The AATF’s $18.14 billion surplus could jumpstart the effort, covering initial costs without raising the deficit. To ensure efficiency, Congress must reform the FAA’s procurement and budgeting rules, which force upfront funding of capital projects, slowing progress. A streamlined approach, coupled with private-sector partnerships, could accelerate NextGen’s rollout while keeping costs in check.
Addressing Objections
Critics, including some airline and general aviation groups, may argue that diverting AATF funds from airport grants or other programs could harm infrastructure or rural airports. But safety must come first. A modern ATC system benefits all airports by reducing delays and enhancing access. Moreover, airport grants, like the $15 billion from the Bipartisan Infrastructure Law, can be supplemented by local and private funding, as many airports already do. The alternative—continuing to underfund ATC—risks more outages, collisions, and economic losses that dwarf these concerns.
Others may push privatization, citing Canada’s Nav Canada model. While privatization merits debate, it faces political hurdles and risks higher user fees for smaller operators. Redirecting existing taxes is a faster, politically feasible fix that leverages funds already collected from aviation users.
Congress must act swiftly. The FAA Reauthorization Act of 2024 extended AATF taxes through 2028, but spending remains hamstrung by discretionary budget caps. Legislation should mandate that 100% of AATF revenue—$20.2 billion annually—be dedicated to ATC modernization for three years, with clear milestones for NextGen completion by 2028. Oversight committees must hold the FAA accountable, demanding updated cost estimates (absent since 2017) and detailed risk mitigation plans, as recommended by the GAO.
The Biden administration’s piecemeal approach—$20 million here, $332 million there—won’t cut it. Neither will President Trump’s call for an overhaul with “not too much money.” The problem demands bold action, not half-measures. Conservatives should lead the charge, rallying behind a plan that cuts waste, prioritizes safety, and delivers results.
The FAA’s ATC system is a disaster waiting to happen. With $20.2 billion in airline taxes flowing into the AATF each year, we have the funds to fix it. By redirecting this revenue to complete NextGen ($14.8–$21 billion) and modernize radars and facilities ($8 billion through 2030), we can prevent outages, save lives, and boost the economy. Conservatives must demand accountability, streamline bureaucracy, and put safety first. Every day we delay risks another tragedy. It’s time to act—before the next crash headlines prove us right.
