Modern Skies Act

The Modern Skies Act authorizes supplemental funding for the Federal Aviation Administration for airport terminal modernization and air traffic control improvements. It establishes a pilot program for aging flagship terminals at transitional hub airports and provides appropriations for air traffic control consolidation, automation, cloud computing, and flow management, as well as terminal and airport improvement grants.

Sec. 3, Pilot program for modernization, replacement, or full reconstruction of aging flagship terminals at transitional hub airports: The Secretary of Transportation must establish a pilot program to issue grants to sponsors of up to 3 transitional hub airports (medium hub airports as of enactment with a primary terminal built before 1990 that has not been comprehensively redeveloped since then and has a terminal project in final design with completed environmental review). Applications must demonstrate historic features, economic benefits, competition enhancement, innovative design, need for long-term viability, project readiness, and estimated costs. Eligible uses include terminal development, demolition/construction, utility and baggage systems, passenger circulation improvements, replacement of obsolete ground support equipment, and cargo facility improvements. The federal share is up to 90%. $10,000,000,000 is appropriated for fiscal year 2027, with up to 3% for administrative expenses. The Secretary must brief Congress within one year.

Sec. 4, Air traffic control improvements: $300,000,000 is appropriated for consolidating terminal air traffic control facilities; $7,200,000,000 for a common automation platform and controller workstation; $2,000,000,000 for cloud computing infrastructure supporting the national airspace system; and $600,000,000 for strategic air traffic flow management technologies. The Administrator may transfer amounts between these purposes. Quarterly reports to Congress are required starting 180 days after enactment.

Sec. 5, Transfer authority to implement the brand-new air traffic control system: The Administrator may transfer amounts made available under a paragraph of section 40003(a) of Public Law 119-21 to any other paragraph of that section, and must describe any transfers in reports under section 40003(b) of that law.

Sec. 6, Terminal air traffic control and airport improvements: $2,000,000,000 is appropriated to construct, replace, and improve terminal air traffic control facilities, including digital tower technologies; $3,000,000,000 for discretionary grants under subchapter I of chapter 471 and subchapter I of chapter 475 of title 49, United States Code (not subject to apportionment formulas or obligation limitations); and $5,000,000,000 for discretionary grants for airport terminal development projects addressing aging infrastructure. For terminal grants, the federal share is 80% for large and medium hub airports, and 95% for small hub, nonhub, and non-primary airports. Up to 3% of terminal funds may be used for administrative expenses.