FAA to Receive $2.3B Budget Increase in 2026, Focus on ATC Hiring

The U.S. House Appropriations Committee has approved a $23.3 billion budget for the Federal Aviation Administration (FAA) for fiscal year 2026, representing a significant $2.3 billion increase over the previous year. The funding is included in the larger Transportation, Housing, and Urban Development (THUD) appropriations bill and reflects renewed federal efforts to modernize the national airspace system and bolster aviation safety.
A major focus of the proposed FAA budget is air traffic control (ATC) operations, which will receive $10.368 billion in full funding. This allocation includes the hiring of 2,500 new air traffic controllers to address widespread staffing shortages that have led to overtime demands, delays, and growing strain on the existing workforce.
Industry experts view the move as essential to improving airspace efficiency and ensuring safer skies amid growing passenger volumes. The additional personnel are expected to enhance system performance, especially at high-traffic airports and regions currently facing operational bottlenecks.
Record Infrastructure Funding
The FAA will also receive a historic $5 billion for facilities and equipment—its largest infrastructure investment to date. This funding will be used to upgrade radar systems, modernize air traffic control towers, and replace aging navigation technology essential to the safe and efficient management of the national airspace.
These infrastructure investments are considered critical to enabling the long-term success of the FAA’s NextGen modernization initiative, which aims to shift from ground-based to satellite-based navigation and improve the overall performance of the aviation system.
Operations and Safety Programs
The agency’s total operations budget will increase to $13.48 billion, up $269 million from fiscal year 2025. While this is slightly below the administration’s initial funding request, the additional resources will support key areas such as aviation safety, training, and regulatory oversight.
Of particular note, $379 million is allocated to the Aircraft Certification Service. A portion of this funding will go toward enhancing inspector training and rebuilding technical expertise within the FAA—efforts that are especially timely following recent industry scrutiny over aircraft manufacturing and certification standards.
Cuts to R&D and Flat Airport Funding
While the budget includes major increases in operational and infrastructure funding, not all areas saw gains. Research and development funding was reduced by $50 million, bringing the total to $230 million. The Airport Improvement Program (AIP), which funds capital development at public-use airports, remains flat at $4 billion.
Some aviation stakeholders have expressed concern that reduced R&D funding could slow innovation in areas such as autonomous aircraft integration, sustainability, and aviation cybersecurity.
Political Context and Future Outlook
The FAA budget discussion comes amid growing political attention to the air traffic system’s reliability, following a series of high-profile flight delays and system disruptions. Former President Donald Trump recently announced plans to “radically transform” the air traffic control system if re-elected, pointing to operational failures at Newark Liberty International Airport as evidence of the need for change.
With the House version of the THUD bill now approved, the budget proposal heads to the Senate for further review and negotiation. Lawmakers from both chambers will need to reconcile their versions before a final agreement is reached.
The proposed FAA funding package signals a bipartisan commitment to addressing structural challenges in U.S. aviation—from outdated infrastructure to critical workforce gaps—as demand for air travel continues to climb.
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Sources: AirGuide Business airguide.info, bing.com, aerotime.aero