Airport Alert: FY 2026 Trump Budget Proposes Increased Aviation Spending Amid Deep Cuts Elsewhere
FY 2026 Trump Budget Proposes Increased Aviation Spending Amid Deep Cuts Elsewhere
May 2, 2025
The letter, totaling 46 pages, provides only a broad glimpse of FY26 funding requests. A more detailed budget submission from each federal agency is expected to be transmitted to Congress later this month. The letter notes that the recommended funding levels are designed to rein in federal spending based on a rigorous line-by-line review of FY25 spending. The letter also states that, in some instances, state or local governments would be better able to provide funding for certain programs or government services.
Notable items include:
- For FAA, the proposal calls for increased funding for Operations by $359 million to $13.8 billion, “reflecting the Administration’s commitment to safe and efficient air travel.” This increase would support a salary increase and a surge in hiring of air traffic controllers, as well as updates to the FAA’s outdated telecommunications systems.
- The proposal also calls for a significant increase in funding for FAA facilities and radar upgrades, including a “$450 million down payment on a multiyear, multi-billion-dollar radar replacement program.” The proposal also notes that “a substantial amount will also be requested as mandatory funding through reconciliation.” As we reported on Wednesday, the House Transportation and Infrastructure Committee has proposed $12.5 billion for air traffic control (ATC) upgrades as part of its budget reconciliation package. The Trump Administration has yet to release the full details of its ATC modernization proposal, but is expected to do so soon.
- The Essential Air Service Program is targeted for a reduction of $308 million. The administration writes that “spending on this program is out of control, more than doubling between 2021 and 2025. The budget reins in EAS subsidies by proposing a mix of reforms to adjust eligibility and subsidy rates to help rural communities’ air transportation needs in a more sustainable manner.”
- Within TSA, the proposal calls for reducing funding for Transportation Security Officers by $247 million, “consistent with the President’s goal to reduce wasteful government spending and abuse of government programs.” The document justifies this reduction based on “TSA’s consistent failures in audits, its intrusive screening measures, and the agency allowing illegal migrants to fly into the interior of the United States without proper documents.”
- For the Department of Homeland Security overall, the proposal seeks an increase of $43.8 billion; however, these proposed increases are part of the reconciliation bill currently being considered by Congress. After factoring out this figure, it appears that overall DHS funding levels will be slightly reduced, not increased by 64.9 percent as noted in the letter.
- The letter does not mention funding levels for AIP and other airport funding priorities at the DOT and FAA. AAAE is urging Congress to appropriate $4 billion for traditional AIP funding and $200 million for supplemental discretionary grants – the same amounts authorized in the FAA Reauthorization Act of 2024.
- It also does not include a specific funding request for the FAA Contract Tower Program. We expect that the FAA will provide $255 million for the program in FY25 – almost $50 million above the FY24 enacted level. We are urging Congress to increase funding by an additional $20 million in FY26, raising contract tower funding to $275 million.
- Specifics on proposed funding for DHS programs are also limited. As a reminder, we are urging Congress to provide funding for law enforcement officer reimbursement grants, state and local canine teams, TSA exit lane staffing, and advanced TSA checkpoint technology. Obtaining funding for these initiatives will not be an easy task, considering the administration’s plan to dramatically cut non-defense discretionary spending.
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