The Federal Aviation Administration (FAA) imposed a ground stop at Los Angeles International Airport (LAX) on September 15, 2026, due to a staffing issue. The FAA confirmed the ground stop was lifted later the same day and that normal flight operations have resumed at the airport.
FAA Reform Funding and Scope
The FAA is undertaking a $10.6 billion air traffic control (ATC) reform plan, which involves more than 11,000 projects during its first phase. Congress has previously approved $9 billion for this phase. Additionally, the FAA is allocating $1 billion from its current fiscal year budget and is requesting an extra $574 million to complete
the reforms.
The Government Accountability Office (GAO) issued a report on September 14, 2026, highlighting that the FAA has underestimated the operating costs for the new ATC system and has not established a detailed schedule for project completion. Telecommunications upgrades in this modernization have increased in cost from $4.75 billion to $5.91 billion, contributing to budget challenges.
Challenges in Air Traffic Control Modernization
The FAA’s existing air traffic control infrastructure is described by the GAO as “severely outdated, underperforming, and unsustainable,” with the aging technology linked to a rise in aviation incidents. The FAA is replacing components such as voice switches in control towers, which is
identified as a high-risk area due to the complexity of operating both legacy and new equipment simultaneously.
The GAO report states, “In essence, the FAA is buying delivery speed at the risk of cost uncertainty and potential disruptions,” increasing the likelihood that the FAA will experience cost overruns, delays, and unmet performance targets similar to past modernization efforts dating back to the agency’s first comprehensive plan in 1982.
Contract Awards and Upcoming Testimony
In December 2025, the FAA awarded Peraton, a company owned by Veritas Capital, a $1.5 billion contract to oversee the ATC modernization effort. FAA Administrator Bryan Bedford is scheduled to testify before
Congress on Tuesday, September 15, 2026, to discuss the progress, funding needs, and plans to deploy software systems designed to minimize flight delays.
The FAA provided a letter to the GAO affirming its commitment to best practices and stating that over 95% of specific tasks within the modernization plan remain on schedule, despite budget increases and operational risks.
