U.S. GOVERNMENT PUBLISHING OFFICE

WASHINGTON : 

1 

69–011 2017

115th Congress, 1st Session – – – – – – – – – – – – – House Document 115–45 

PRINCIPLES FOR REFORMING THE AIR TRAFFIC 

CONTROL SYSTEM 

COMMUNICATION 

FROM

THE PRESIDENT OF THE UNITED STATES 

TRANSMITTING

THE ADMINISTRATION’S PRINCIPLES FOR REFORMING THE 

NATION’S AIR TRAFFIC CONTROL SYSTEM 

JUNE 7, 2017.—Referred to the Committee on Transportation and 

Infrastructure and ordered to be printed 


E:\Seals\Congress.#13
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THE WHITE HOUSE, 

Washington, June 5, 2017. 

Hon. PAUL D. RYAN, 

Speaker of the House of Representatives, 

Washington, DC. 

DEAR MR. SPEAKER: I am pleased to transmit to you my Administration’s principles for reforming our Nation’s Air Traffic Control 

(ATC) System. Each year, our ATC system contributes $1.5 trillion 

to our economy—roughly 5 percent of our gross domestic product. 

To protect and improve this critical infrastructure asset, we must 

focus more attention on our ATC system and enact much needed 

reforms. 

Despite using 1960s technology and operating in outdated facilities, United States air traffic controllers remain the best in the 

world. Every day, they safely manage the largest, most complex 

airspace system in the world. As air traffic has increased, however, 

the FAA has had to sacrifice system efficiency to maintain safe operations. 

Our Nation’s air traffic is only going to increase, and today’s ATC 

system simply will not be able to handle the volume that is expected over the next two decades. Without immediate attention to 

comprehensive ATC reform, aviation congestion and delays—which 

already cost the United States economy more than $25 billion per 

year—will worsen and our economy will further suffer. 

The Federal Government’s $1 billion per year investment in the 

NextGen Program’s improved ATC technology has proven insufficient. Unfortunately, political interference, budget uncertainty, and 

a bureaucratic government procurement system have continued to 

impede modernization efforts. The NextGen Program was originally 

estimated to cost $40 billion. By the Inspector General’s most recent estimates, however, it may cost an additional $80 billion to 

complete. By the time it is fully operational, the technology may already be obsolete. 

Efficient operation of our airspace requires significant investments in rapidly evolving technology. In this environment, bureaucratic efforts are unlikely to succeed. That is why all other industrialized countries, with the exceptions of the United States and 

France, have separated their ATC functions from government. By 

taking that critical step, those countries have accelerated modernization, maintained or improved safety, and lowered operating 

costs. 

We must take bold action now to preserve the competitive economic advantage in the world economy that our ATC system provides. The enclosed proposal describes a new, not-for-profit ATC entity that will leverage private capital to enable faster modernization and immediate safety and operational improvements for all 

users of the system, from passengers to shippers to operators. 

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I look forward to working with you to enact these important reforms into law. 

Sincerely, 

DONALD J. TRUMP. 

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PRESIDENT DONALD J. TRUMP'S PRINCIPLES FOR REFORMING 

THE U.S. AIR TRAFFIC CONTROL SYSTEM 

Overview 

The United States Air Traffic Control (ATC) system is one of the most important and 

vibrant elements of our Nation's infrastructure. Every day, the dedicated men and women of the 

Federal Aviation Administration (FAA) safely and efficiently guide thousands of aircraft to and 

from their destinations, collectively carrying millions of passengers and tons of cargo. Yet, the 

FAA's ATC operations are currently mired within a Federal bureaucracy that hinders innovative 

operations and the timely introduction of new technology. In order to modernize our ATC 

system, the Administration supports moving the FAA's ATC operations into a new nongovernmental entity. This will enable ATC to keep pace with the accelerating rate of change in 

the aviation industry, including the integration of new entrants such as Umnanned Aircraft 

Systems and Commercial Space Transports. A more nimble ATC entity will also be able to 

more quickly and securely implement Next Generation (NextGen) technology, which will reduce 

aircraft delays and expand the availability of the National Airspace System (NAS) for all users. 

ATC reform presents an exciting infrastructure improvement opportunity, and its 

completion will demonstrate early progress toward much needed infrastructure reform across all 

sectors. The Administration's principles for reforming ATC will drive legislation that will 

reduce delays, further improve aviation's leading safety record, protect access to rural 

communities, and accelerate much needed capital investment. These principles insulate one of 

our most important national assets from political interferences and the crippling effects of budget 

uncertainty, while keeping intact FAA's critical safety oversight. Additionally, they preserve 

essential working relationships and interoperable capabilities with the Department of Defense 

(DoD), the Department of Homeland Security (DHS), and law enforcement agencies that are 

critical to ensuring the safety and security of the Nation. 

This proposal demonstrates that the Federal Government does not have to supply all of 

the resources required to develop and maintain our Nation's vast infrastructure. Often, it simply 

needs to remove obstacles hindering investment and innovation. The new ATC entity envisioned 

in these reform principles will be self-sustaining, financed through fees paid by the users of the 

NAS. These fees will be more efficient and less burdensome than the patchwork of aviation 

taxes that supports the system today. 

The time has come to embrace a bolder vision of what our Nation's ATC system can be 

and how best to move forward to achieve it. In 2016, House Transportation and Infrastructure 

Committee Chairman Bill Shuster introduced the Aviation Innovation, Reform, and 

Reauthorization (AIRR) Act to move ATC from the Government to a not-for-profit, independent 

entity. The Administration supports the proposed AIRR Act as a good foundation for reforming 

the A TC system, and believes the legislation can be improved. Accordingly, the Administration 

supports the enactment of legislation that incorporates the principles detailed in this document. 
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The Principles 

Safety: The FAA's appropriate role is the inherently governmental function of safety regulator. 

Removing ATC operations from the FAA would further this principle, and bring it in line with 

the recommended practice of the International Civil Aviation Organization's (ICAO) and the 

approach used by the majority of developed aviation states around the world. Aviation safety 

regulation would remain within the Department of Transportation, and the FAA would migrate 

to a performance-based framework responsible for providing effective oversight of the new ATC 

entity. 

National Security: Protecting our Nation's security is of paramount importance. Accordingly, 

the new A TC entity must provide airspace access, prioritization, integration, cooperation, 

navigation, and information management services and support at levels of quality th'at ensure 

sustained national security and law enforcement capabilities. This must be done at no cost to the 

Federal Government. The new entity must develop interoperability plans, procedures, policies, 

and programs that ensure it can operate effectively, under all circumstances, with DoD. The new 

entity must also be able to work under DHS control in exigent circumstances involving physical, 

adversarial, and technological threats and circumstances. The Federal Government would 

indemnifY the new entity for costs incurred in connection with operations that support Federal 

national security and law enforcement activities. 

Cybersecurity: The new ATC system must be secure, robust, and resilient. Components will fail, 

but those failures must not significantly affect the ATC system's ability to provide safe and 

effective operation at peak capacity. Additionally, as part of our Nation's critical infrastructure, 

the new ATC system must be able to detect and defeat malicious cyber-based efforts to 

manipulate or degrade its operations. 

Access: The new ATC entity must maintain open access for all users of the airspace and, 

specifically, those in rural communities, general aviation users, and the military. 

• Open Access: All users, including the general aviation industry and emerging new 

entrants, must have open access to our Nation's airspace. The FAA would continue 

to certify new entrants (such as Unmanned Aircraft Systems and Commercial Space 

Transports) as part of its responsibility to oversee safe use of the NAS. The new 

A TC entity would grant FAA-certified users access to the NAS, subject to their 

participation in the system's user fees, their being equipped, as necessary, to fly in 

controlled air space, and their compliance with other applicable rules and regulations. 

• Rural Access: The new entity must maintain access and services to rural 

communities and general aviation users. 

• Military Access: To ensure safe and effective execution of military missions, the 

new ATC entity must ensure continued military access to delegated Special Activity 

Airspace (e.g., Military Training Routes, Military Operating Areas, Warning Areas, 

and Restricted Areas); be capable of enforcing temporary airspace restrictions; and 

meet national security airspace requirements for DoD training, testing, and exercises. 
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Noise: Efficient use of the airspace requires new technology and efficient air routes. The new 

ATC entity must have the authority, after seeking public comment, to adjust airspace routes. The 

proposed route change would only be subject to National Environmental Policy Act (NEPA) 

review if the change exceeds the FAA-established noise threshold. The FAA would still be 

responsible for ensuring-within a reasonable period of time, like 120 days-that any proposed 

route change does not create a safety hazard. 

New Entity: America's growing aviation system demands a new, independent, non-government 

organization to operate our Nation's airspace. The new entity should have access to capital 

markets in order to spur capital investment, technology adoption, and innovation faster, more 

effectively, and securely. Over the last 20 years, more than 50 countries have already 

successfully transitioned their A TC operations. 

• Transition Period: The transfer of A TC operations from the FAA to the new entity 

should be completed within an established 3-year transition period overseen by the 

Secretary of Transportation. The transition period should be marked by milestones 

developed and monitored by the Secretary of Transportation, in coordination with the 

Secretary of Defense, to ensure adequate progress. The transition period may be 

extended only with the approval of the President. 

• Not-For-Profit Entity: The new ATC entity should be a not-for-profit, nongovernmental entity. 

• Fees: The new A TC entity should be financially self-sufficient through the collection 

of user fees that cover both its costs of operations and recapitalization. The aviation 

taxes that currently cover these costs should be sunset, except for those necessary to 

continue to fund the Airport Improvement Program. General fund revenues should 

fund the rest of the FAA. Users should have input in the fees and their structure, 

which should be guided by ICAO principles and be consistent with the international 

obligations of the United States. Except national-security users (including DoD 

aircraft, DoD-contracted flights, and foreign military aircraft), diplomatic users 

(including non-commercial United States Government and foreign sovereign State 

aircraft), and public safety users, all users should pay their fair share. To ensure that 

rates are just and reasonable, however, users should have the ability to request review 

by the Secretary of Transportation, rather than the Congress. Any determination by 

the Secretary of Transportation should be final. 

• Financial Authority: The new ATC entity should have the authority to borrow funds 

and enter into contracts, leases, and other arrangements during and after the transition 

period. The new entity should also have the authority to procure goods and services, 

hire employees, and to bond or pledge future revenues to fulfill the terms of financial 

arrangements and other transactions. Additionally, the new entity should have the 

authority to sell or transfer its assets. 

• Assets: All assets currently owned by the FAA and used in the operation of ATC 

should be transferred, at no charge, to the new ATC entity. The users of the ATC 

system have already paid for those assets and should not be charged for them again. 
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The assets should be transferred along with any environmental liabilities associated 

with them. Accordingly, sufficient funds to account for those liabilities should also 

be transferred to the new entity. 

• Governance: A professional Board of Directors should manage the new ATC. The 

members of the Board should have a fiduciary responsibility solely to the new ATC 

entity and be free of any financial conflict of interest. Board seats should not be 

reserved for any entity, except tor the ATC entity's Chief Executive Officer, who 

would serve as a representative of the new entity. The new entity should represent all 

users impartially, and no group should have even the appearance of influence over the 

Board. The Board should ensure that DoD and national-security equities are 

adequately represented and that the entity maintains appropriate relationships with 

national and international air navigation service providers and forums. To establish 

the initial Board, the Secretary of Transportation should select eight members from 

candidate lists provided by five nominating groups. The nominating groups should 

be airlines, unions, general aviation, airports, and the Department ofT ransportation. 

Each nominating group would provide lists of six to ten qualified persons to the 

Secretary. 

• United States-based carriers with annual revenues greater than $10 billion should 

develop the airline list. 

• Unions representing at least 50 percent ofF AA employees that would transfer to 

the new ATC entity or representing more than 10,000 United States commercial 

pilots should develop the union list. 

• The two largest trade groups representing general aviation (Aircraft Owners and 

Pilots Association (AOPA) and National Business Aviation Association 

(NBAA)), should jointly develop the general aviation list. 

• The two largest trade groups representing United States airports (Airports Council 

International- North America (ACI-NA) and American Association of Airport 

Executives (AAAE)), should develop the airport list. 

Two members should be selected from the airline list, two members should be 

selected from the union list, one member should be selected from the general aviation 

list, one member should be selected from the airport list, and two members should be 

selected from the Department of Transportation list. Those eight initial Board 

members would then select a Chief Executive Officer. Those nine Board members 

would then select four independent Board members. The 13-member Board would be 

constituted for at least the transition period, plus the first year of operation. After this 

time, decisions about Board constitution and members' terms should be left to the 

discretion of the Board. Once the initial Board members are nominated, no group 

should have an exclusive right to name successor Board members. 

• Labor: The new A TC entity should honor existing labor agreements. Employees 

who transition to the new entity will no longer be Federal employees, but they should 

be held harmless and have similar rights to those they had as Federal employees at the 

FAA. Consistent with those rights, employees of the new entity should not be 

permitted to strike. 
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• Spectrum: The new A TC entity should not be charged tor its use of spectrum, as the 

FAA is not charged for spectrum use today. The new entity will occupy spectrum 

shared with Federal entities. The new entity, however, could be require.<! to vacate 

existing spectrum band (at some point) and move to another frequency along with 

other Federal entities. In any future spectrum reallocation, the new entity should be 

treated as a Federal entity, including with respect to the use of any reallocation 

auction proceeds to finance relocation expenses. Relocation expenses could include 

those associated with the development, procurement, and installation of new radar 

systems that are interoperable with government systems on a different spectrum band. 

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