U.S. Sen. Eric Schmitt, R-Mo., has introduced the Modern Skies Act, legislation that would provide approximately $30 billion to modernize the nation's air traffic control system, replace aging airport infrastructure and expand terminal capacity.

The proposal, announced Sept. 28 with Transportation Secretary Sean Duffy, builds on the $12.5 billion Congress approved in 2025 for air traffic control modernization. It would establish three major funding programs addressing airport facilities, terminal development and aviation technology.

A central component for airports is a proposed $10 billion pilot program to modernize or rebuild aging terminals at up to three medium-hub airports. The program is intended to demonstrate how substantial federal investment could expand passenger capacity, support airline competition and improve service to smaller communities.

Another $10 billion would support airport infrastructure improvements, including $5 billion for terminal modernization, $3 billion for discretionary Airport Improvement Program projects and $2 billion for air traffic control towers and facilities. The tower funding would include digital tower technology.

The legislation also proposes approximately $10 billion for the next phase of air traffic control modernization, including telecommunications infrastructure, a common automation platform, controller workstations and advanced traffic-flow management technology.

The proposal follows a series of air traffic control technology failures and growing concerns about the reliability of aging aviation infrastructure. A recent Government Accountability Office report found that the FAA had not yet developed a complete lifecycle cost estimate or integrated master schedule for its modernization effort.

Transportation officials and aviation industry organizations have called for additional funding to accelerate the upgrades. The Modern Skies Act has received support from a coalition of nearly 60 aviation organizations, including airlines, aviation labor groups and industry associations.

The legislation remains subject to congressional consideration and would require approval before the proposed funding becomes available.