FAA’s Funding Windfall Triggers Procurement Surge — But Can the Agency Keep Up?
Terry Gerton’s recent article on Federal News Network captures a moment of tremendous opportunity and challenge for the Federal Aviation Administration—an agency now sitting atop unprecedented funding. Congress has already injected at least $12.5 billion into modernization efforts through a sweeping appropriations package, and FY 2026 proposals in both the House and Senate suggest future budgets between $22 billion and $23 billion . The question she poses: can the FAA actually turn all of that cash into meaningful modernization?
Reading Gerton’s account, it becomes clear that this influx of funds is unlike anything the agency has handled before. While FAA acquisitions in past years rarely reached into the multi‑billion-dollar scale, the current scenario is fundamentally different—forcing the agency to expand procurement pipelines, scale supplier relationships, and align internal systems to handle fast-moving spend. With so much money on the table, even seasoned procurement professionals are asking: does FAA have the capacity to scale quickly enough?
A central element in Gerton’s analysis is the FAA’s Acquisition Management System (AMS), its internally devised substitute for the Federal Acquisition Regulation. AMS has historically enabled efficiency and reduced red tape—but it has never faced the task of executing toward tens of billions in rapid-fire contracts. Gerton highlights concerns that while AMS was built for speed and flexibility, it may struggle under this unprecedented load. The stakes of deploying AMS at scale have never been higher.
Equally troubling in Gerton’s narrative is the turbulence in FAA’s leadership. She notes a series of high-profile resignations across air traffic, finance, and procurement roles in 2025, leaving significant continuity gaps and thinning the institutional memory needed to manage such a surge of funding effectively. Without strong leaders overseeing procurement strategy, the risk is that the funding delivers only partial progress—followed by delays, overruns, and unmet expectations.
Still, Gerton reminds readers that the urgency behind the funding is grounded in real danger. Recent incidents—including a tragic collision between an Army helicopter and an American Airlines regional jet, along with a radar system failure at Newark Liberty—have spotlighted vulnerabilities in the current air traffic network. Pressure is mounting for the FAA and the Department of Transportation to modernize decades‑old surveillance systems, communications gear, control centers, and runway safety equipment. The agency is now expected to upgrade anti‑collision systems at more than 200 airports and deploy ADS‑B tracking more broadly .
Transportation Secretary Sean Duffy has framed the effort as addressing a sweeping infrastructure failure that has been decades in the making. He and other industry stakeholders argue that the FAA’s existing systems are simply too outdated to patch, calling for urgent, up‑front investment—somewhere near $31 billion over the next few years, though Congress has yet to commit that much in a single year.
Gerton’s account paints a high‑stakes picture: if the FAA can execute procurement cleanly, the payoff could be transformative. Airlines, pilots, controllers, and passengers could benefit from vastly more reliable radar, smoother automation, modern control centers, and a safer airspace. In regions flagged as “unsustainable” by recent FAA risk assessments—such as Northern California, the Northeast Corridor, Cleveland, and Houston—upgrades are long overdue.
Yet Gerton carefully flags the dangers of mismanagement. Procurement hiccups—lack of oversight, cost overruns, bottlenecks among suppliers—could erode public confidence and leave critical modernization goals unrealized. Government watchdogs, including PSC and other oversight bodies, are stressing the importance of transparent, accountable procurement and clear delivery timelines.
Overall, Gerton’s narrative makes clear that the FAA is at a pivotal junction. From $12.5 billion already allocated to potentially $22–23 billion in the 2026 budget, the agency faces its most aggressive procurement challenge in modern memory. The potential gains are immense—but so are the risks. The difference between missing the mark and achieving a truly modern air traffic system will come down to internal readiness, stable leadership, rigorous execution, and unwavering accountability.
As Terry Gerton’s reporting underscores, this is more than a funding story—it’s a test of whether the FAA can take billions in taxpayer dollars and convert them into safer, smarter, and more resilient air traffic infrastructure. How the agency navigates that path will shape the future of U.S. aviation modernization.
Disclaimer: This blog post is a summary and analysis based on publicly available reporting by Terry Gerton for Federal News Network, titled “Billions in FAA funding mean a new surge in procurement” (August 5, 2025). While every effort has been made to accurately reflect the article’s contents and implications, this post is for informational purposes only and does not constitute legal or financial advice. Readers should refer to the original article and consult with qualified professionals for guidance specific to their situation.