Major initiatives to modernize airports and air traffic control date back to the early 1980s. This is not surprising given ongoing advances in aircraft technology, record passenger volumes, and the difficulties of replacing legacy infrastructure without disrupting traffic beyond tolerable levels. The second Trump administration has launched its own $12.5 billion modernization effort, abandoning its first-term privatization approach in favor of an ambitious implementation of a new air traffic control system by the end of 2028.
In classic Trump administration style, the system is referred to as the Brand-New State-of-the-Art Air Traffic Control System (BNATCS). The effort seeks to reduce equipment-related delays across the National Airspace System (NAS) through five subsidiary initiatives: communications, surveillance, automation, facilities, and Alaska weather stations. An additional $20 billion in appropriations is expected to complete the BNATCS system.
In December, Peraton was announced as the pure-play systems integrator for telecommunications networks, radar, software, and hardware IT components. Transportation Secretary Duffy described Peraton’s role as “providing centralized leadership to ensure change happens in a coordinated, effective way. They will guide the modernization effort, keep it on track, and support the FAA as new capabilities and technologies are deployed across the NAS.”
However, this program represents only part of a much broader modernization landscape. Airports across the country have been actively engaged in a range of modernization efforts. A look at GovSpend purchasing data over the last 60 months finds $1.5 billion in spending by 183 agencies in critical initiative categories. This spending was spread across nearly 56,000 line items and 4,700 vendors, with communications emerging as the leading category, accounting for almost 10,000 purchases
BNATCS investments promise to significantly boost this spending with $11.0 billion falling outside of Peraton’s contract. Over the last 90 days, 52 agencies have discussed airport infrastructure modernization, nearly double the rate in Q4 of last year.
Recent examples illustrate the growing momentum. On February 19th, the Los Angeles World Airports (LAX) Board of Commissioners held a wide-ranging discussion on modernization needs, noting that the airport is 100 years old and, in some cases, has not seen infrastructure updates since the 1960s. Meanwhile, on February 12th, General Edward Lawrence Logan International Airport (BOS) released an update to its $4.1 billion FY26-30 Capital Investment Plan (CIP). A significant component of that plan focuses on tower upgrades, including a data center, technical workspaces, a simulator room, and telecommunications.
Most of the modernization spending and discussions underway today are not yet directly tied to the BNATCS framework. That means vendors still have time to position themselves before the program’s broader procurement ripple effects begin to materialize. As agencies continue to address aging infrastructure and rising air traffic demand, the BNATCS initiative—and the possibility of another $20 billion in appropriations—could significantly accelerate investment across communications, automation, facilities, and related airport systems. For vendors tracking airport modernization projects, FAA technology upgrades, and aviation infrastructure spending, aligning solutions with these modernization priorities now will be critical to capturing upcoming federal and airport procurement opportunities.
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About the Author: Chris Dixon
