Home 5 Aviation News 5 ​FAA Still Billions Short of Funding Needed for ATC Data Automation

​FAA Still Billions Short of Funding Needed for ATC Data Automation

Aug 13, 2026 | Aviation News, Flying Magazine

As competition for the FAA’s common automation platform (CAP) contract heats up, the agency still lacks the funds required to develop the technology, which is envisioned to combine its En Route Automation Modernization (ERAM) and Standard Terminal Automation Replacement System (STARS) platforms.

Thales becomes the latest company to pitch a CAP solution to the FAA. On Wednesday, it announced TopSky-America, a cloud-based, AI-powered platform that it said is tailored for the FAA to enhance information sharing, decision making, and situational awareness for air traffic controllers (ATCs).

The idea is to reduce controller workload by combining data from ERAM, which manages high-altitude flights, and STARS, which coordinates arrivals and departures in towers and terminal route approach control (TRACON) facilities, in a single digital interface. STARS also provides sequencing and issues weather updates and conflict alerts.

The CAP is billed as a core pillar of the Transportation Department’s (DOT) Brand New Air Traffic Control System (BNATCS) effort. Without funding, though, it is unclear how the FAA plans to support the CAP’s development and deployment.

Congress last year allocated $12.5 billion toward BNATCS, while the DOT has requested a total of $31.5 billion to fund its more expensive components. The Modern Skies Coalition, led by the Aircraft Owners and Pilots Association (AOPA), in July called on Congress to allocate another $20 billion toward the effort. It estimated that the CAP alone would cost $10 billion.

Transportation Secretary Sean Duffy has previously asked for the additional $20 billion but in recent months has signalled that the agency would settle for less. Duffy on Tuesday said the DOT “would love $20 [billion], but we’ll take $10 [billion].”

The secretary clarified that $10 billion would cover certain software upgrades planned under BNATCS. A “second $10 billion,” he said, would be required for the “actual bricks and mortar” of new ATC facilities, such as TRACONs. Duffy did not mention the CAP in his remarks Monday, and the FAA’s internal estimate of its cost is unclear.

Thales said Thursday that it supports the “FAA’s call for additional congressional funding.”

Competition Heats Up

Thales described TopSky-America as an advanced ATC automation system “built specifically for the U.S. National Airspace System [NAS].” The platform is a version of the company’s popular TopSky-ATC offering. But Thales emphasized that it is “customized for the unique requirements” of and designed “exclusively” for U.S. airspace.

“These capabilities will deliver greater predictability for air carriers and the traveling public, improve operational performance, and help reduce workload on the controller workforce—while continuing to uphold the highest standards of safety,” the company said in its announcement.

TopSky-America is not the only CAP candidate.

RTX’s Collins Aerospace is pitching a version of its AutoTrac platform for the FAA contract, FlightGlobal reported in March. Collins was previously selected for BNATCS to provide hundreds of new ATC radars, while parent RTX is the FAA’s prime STARS contractor. Leidos, which maintains the ERAM system, also has a CAP solution.

The Air Current in April reported that Thales, Collins, Leidos, Australia’s Frequentis, and Spain’s Indra—the FAA’s other BNATCS radar contractor—are the five companies shortlisted for the CAP contract.

Thales’ path to winning the contract could involve highlighting the success of its TopSky-ATC, which it estimates manages 40 percent of air traffic globally. The company in July announced agreements to modernize the air traffic management systems of Singapore and Mongolia. It also produces primary and secondary ATC surveillance radars and is developing capabilities for the management of uncrewed aircraft systems (UAS) traffic.

Also working in the French company’s favor is a commitment to design TopSky-America software upgrades in the U.S., a nod to the DOT’s desire for domestic companies to lead the ATC modernization effort.

“One of the focuses in modernization was to onshore production of critical infrastructure,” FAA Administrator Bryan Bedford said Tuesday. “We have brought those jobs back to the United States, which is a key focus of [Secretary Duffy] and [President Donald Trump].”

Thales has about 5,000 U.S. employees and said producing the platform domestically will create hundreds of new jobs.

Ultimately, the contract award could come down to a battle among the shortlisted companies.

Thales earlier this year lost out on the FAA’s contract for Strategic Management of Airspace, Routes, and Trajectories (SMART)—an AI-powered, predictive air traffic management software—after being shortlisted for that award. Bedford said Tuesday that Thales, Palantir, and Air Space Intelligence (ASI), which ultimately won the contract, each created digital twins of the NAS for evaluation.

Duffy described the exercise as a “competition” and said ASI produced the “best product, the best tool that we thought would help us best manage the airspace.”

“We want the best companies building our software,” Duffy said. “And what’s different is we’re not just picking a contractor to work for us. We’re actually going through a competition to see who actually can deliver on behalf of the FAA.”

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