There are more solutions than obstacles. Nicolas Zart
The Federal Aviation Administration (FAA) has long been tasked with managing one of the world’s most complex air traffic control (ATC) systems. For decades, however, chronic underfunding has left the agency struggling to keep pace with increasing air traffic volumes, aging infrastructure, and emerging technological demands. Nowhere is this challenge more acute than as the United States confronts the need to integrate Advanced Air Mobility (AAM) innovations with electric vertical takeoff and landing (eVTOL) aircraft into the national airspace system (NAS).
According to a recent article by Kerry Lynch for Aviation International News, the FAA has issued solicitations for integrator proposals aimed at ATC modernization. The initial proposals are due by September 21, 2025, a few days away from now. Will this modernizing effort, part of a comprehensive proposal, replace decades-old technology and systems? We’ll find out in a few years, hopefully in time for the introduction of daily AAM activities.
In the meantime, despite broad agreement on the urgent need for upgrades, Congress has only allocated approximately one-third of the estimated $31.5 billion necessary to overhaul and modernize the FAA’s air traffic infrastructure.
Defunding a System in Need
The constricted funding has forced the FAA to operate within a tight fiscal envelope for many years. A 2023 Government Accountability Office report highlighted that nearly 40 percent of the FAA’s ATC systems are either unsustainable or on the brink of becoming so. Couple this with retirement and a lagging hiring process, and the critical state of the aviation infrastructure in the US becomes apparent. The agency’s infrastructure, including control towers and radar systems, averages over 60 years old, well beyond their prime, potentially affecting overall operational safety. Maintaining these antiquated facilities imposes significant safety risks and operational inefficiencies, notwithstanding specialized technology, and necessitates the right knowledge of such systems.
Moreover, the FAA faces growing responsibilities with no corresponding increase in resources. New entrants to the airspace, including drones, commercial space vehicles, and AAM aircraft, exponentially raise the complexity of air traffic management’s daily operations. The FAA’s current equipment and regulatory framework were largely designed for traditional aircraft and cannot adequately support these novel vehicles.
The FAA’s acting administrator, Bryan Bedford, who was confirmed by the Senate as the new FAA Administrator in July 2025, replacing Rocheleau, who transitioned to the Deputy Administrator role. The industry is urging Congress to approve billions in funding to start system-wide upgrades. Yet, political challenges and the overall uncertainty have delayed full appropriation. The Senate’s version of the FAA Reauthorization Act of 2024 allocated $12.5 billion toward modernization. This figure is widely considered insufficient by industry experts and advocacy groups representing controllers and aviation companies.
Why This Matters to Advanced Air Mobility
Advanced Air Mobility, especially eVTOL, electric short takeoff and landing (eSTOL), electric conventional takeoff and landing (eCTOL) aircraft, and drones promise revolutionary efficiency gains in urban and regional transport. But their success depends on safe integration into the updated and more modern national airspace needed for operations to commence.
Traditional FAA air traffic control models are based on radar sweeps and voice communications. This is not well-suited to handle the rapid proliferation of small, often autonomous aircraft flying in complex urban environments. The FAA’s slow progress in modernizing its ATM systems poses a barrier to AAM commercialization, delaying regulations, certification, and operational approvals. AAM aircraft require modern, scalable air traffic management systems capable of real-time networked tracking, automated collision avoidance, and high-density operational capability.
A recently released white paper by the American Institute of Aeronautics and Astronautics underscores these challenges, urging agile certification frameworks and a performance-based regulation approach that can keep pace with innovation. The FAA’s modernization program is critical to enabling these frameworks by providing the technological backbone necessary for safe AAM integration.
A Call for Urgent Action
Industry stakeholders, including pilot unions and aviation associations, have repeatedly called for emergency funding to address critical infrastructure gaps. The Teamsters union has highlighted the dire need to invest in controller hiring and retention, as the FAA faces a shortage of approximately 3,500 active controllers. This shortage, combined with outdated equipment, exacerbates delays, reduces system resiliency, and increases risks.
Meanwhile, lawmakers are debating large-scale ATC reform legislation that includes funding for tower modernization, terminal radar replacement, and new digital technologies like remote towers and AI-driven surveillance platforms. While these steps are promising, much work remains to secure full funding commitments and align agency priorities with evolving airspace demands.
What Lies Ahead
The FAA’s modernization effort sits at a crossroads. Without sufficient funding and political will, the agency risks falling further behind, forcing the aviation industry, including the burgeoning AAM sector, to navigate an antiquated and congested airspace. Conversely, a robust, well-funded modernization program can accelerate safety improvements, operational efficiency, and pave the way for the envisioned urban air mobility revolution.
Broader Significance and Future Outlook
Transportation Secretary Sean Duffy calls AAM the “next great technological revolution in aviation,” emphasizing the program’s potential to fundamentally improve how people and goods move. Although many of us in the industry have maintained these points for many years, all agree that the successful integration of electric air taxis and regional aircraft will alleviate urban congestion, reduce carbon emissions, and provide critically needed airlift capacity for underserved areas. We just need to make sure the infrastructure can adapt and meet the growing needs of AAM. Simply put, AAM will grow in leaps and bounds, but not without a robust and modern ATC domestic system in place.
The pilot program is an essential proving ground to evaluate operational techniques, infrastructure requirements, community engagement, and safety measures essential for scaling AAM. It also serves a strategic role in creating a national blueprint for integrating these aircraft into the NAS while fostering U.S. leadership in emerging aerospace technologies.
Resources
See the IFAA’s Screening Information Request (SIR) 697DCK-25-R-00445 and submit your proposals before the December 2025 deadline.
UrbanairMobilityNews on the FAA call for industry: https://www.urbanairmobilitynews.com/emerging-regulations/faa-issues-advanced-air-mobility-aircraft-integration-pilot-program-industry-call/
GlobalAir article detailing the FAA’s pilot program: https://www.globalair.com/articles/faa-announces-pilot-program-to-accelerate-air-taxi-operations?id=11222
Flying Magazine’s analysis of eVTOL and the FAA eIPP impact: https://www.flyingmag.com/faa-evtol-eipp-could-transform-us-air-travel/