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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 5572 Introduced in Senate (IS)]
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119th CONGRESS
2d Session
S. 5572
To authorize supplemental funding for the Federal Aviation
Administration, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 28, 2026
Mr. Schmitt introduced the following bill; which was read twice and
referred to the Committee on Commerce, Science, and Transportation
_______________________________________________________________________
A BILL
To authorize supplemental funding for the Federal Aviation
Administration, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Modern Skies Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Federal Aviation Administration.
(2) Appropriate committees of congress.--The term
``appropriate committees of Congress'' means--
(A) the Committee on Commerce, Science, and
Transportation of the Senate; and
(B) the Committee on Transportation and
Infrastructure of the House of Representatives.
(3) Ground support equipment.--The term ``ground support
equipment'' means service and maintenance equipment used at an
airport to support aeronautical operations and related
activities.
(4) Secretary.--The term ``Secretary'' means the Secretary
of Transportation.
(5) Other terms.--The terms ``air carrier'', ``airport'',
``large hub airport'', ``medium hub airport'', ``nonhub
airport'', ``primary airport'', ``public-use airport'', ``small
hub airport'', and ``terminal development'' have the meanings
given such terms in section 47102 of title 49, United States
Code.
SEC. 3. PILOT PROGRAM FOR MODERNIZATION, REPLACEMENT, OR FULL
RECONSTRUCTION OF AGING FLAGSHIP TERMINALS AT
TRANSITIONAL HUB AIRPORTS.
(a) Establishment of Pilot Program.--The Secretary shall establish
and carry out a pilot program (referred to in this section as the
``pilot program''), under which the Secretary shall issue grants to the
sponsors of not more than 3 transitional hub airports for the
rehabilitation and modernization of such airports.
(b) Transitional Hub Airport.--For purposes of this section, a
transitional hub airport is an airport that--
(1) was classified as a medium hub airport as of the date
of enactment of this Act;
(2) includes a primary terminal building constructed before
January 1, 1990, that--
(A) remains in active passenger service; and
(B) continues to serve as the principal commercial
passenger terminal of the airport;
(3) did not complete a comprehensive redevelopment or
replacement of its principal commercial passenger terminal on
or after January 1, 1990; and
(4) has a terminal modernization, rehabilitation, or
reconstruction project that--
(A) is included in a capital improvement program of
the sponsor of the airport;
(B) has completed environmental review in
accordance with the National Environmental Policy Act
of 1969 (42 U.S.C. 4321 et seq.); and
(C) has entered the final design stage.
(c) Application.--A sponsor of a transitional hub airport shall
submit to the Secretary, in such form and manner as the Secretary may
specify, an application for a grant under the pilot program, including
a demonstration, to the satisfaction of the Secretary, of--
(1) the unique or historic architectural features of the
terminal building that the airport sponsor proposes to preserve
in conducting a prospective project under the pilot program;
(2) the expected economic benefit of the prospective
project to the surrounding area;
(3) the extent to which the prospective project will--
(A) enhance competition among incumbent air
carriers;
(B) facilitate air service by new entrant air
carriers; and
(C) facilitate new or improved air service between
the airport and small communities;
(4) the extent to which the prospective project will model
innovative airport design principles that similarly situated
airports might replicate in future projects for rehabilitation
and modernization;
(5) the demonstrable need for the prospective project to
maintain the airport's long-term viability and significance to
the national integrated system of public-use airports;
(6) project readiness;
(7) the reasonable estimated costs of the prospective
project; and
(8) such other factors as the Secretary, in the sole
discretion of the Secretary, determines to be appropriate.
(d) Use of Funds.--
(1) Eligible activities.--A sponsor of a transitional hub
airport selected at the sole discretion of the Secretary to
participate in the pilot program may use the funds awarded
under the pilot program to carry out any of the following
activities at such airport:
(A) Terminal development.
(B) Demolition, construction, and improvement of
terminal buildings or portions thereof.
(C) Installation of utility, energy, baggage
conveyor systems, and other systems for use on the
property of such airport that are reasonably likely to
support long-term usability and resilience.
(D) Improvements to terminal buildings that are
reasonably likely to improve passenger circulation and
terminal capacity.
(E) Replacement of obsolete ground support
equipment and other airside components owned by the
airport sponsor.
(F) Improvements to cargo and logistics facilities
on the property of such airport to expand cargo
handling capacity.
(2) Terms and conditions.--The Secretary may impose any
additional terms or conditions regarding the use of the funds
awarded under the pilot program that the Secretary, in the sole
discretion of the Secretary, determines appropriate.
(e) Federal Share.--The Federal share of costs for the project of a
transitional hub airport participating in the pilot program shall not
exceed 90 percent of the total cost of the project specified in an
application for a grant under this section.
(f) Other Administrative Provisions.--
(1) Eligibility.--The Secretary may issue a grant under the
pilot program to the sponsor of a transitional hub airport for
an eligible project that complies with--
(A) all applicable Federal requirements governing
procurement funded by Federal financial assistance; or
(B) the same policies and procedures such airport
sponsor is required to follow for any procurement with
non-Federal funds.
(2) Certain prior costs as allowable costs.--The Secretary
may decide that a project cost under this section incurred
before the date on which the grant agreement is executed is
allowable if the cost is--
(A) necessarily incurred in formulating or
preparing for a project under this section, including
costs incurred for field surveys, plans and
specifications, property interests in land or airspace,
utility relocation, work site preparation, and
administration or other incidental items that would not
have been incurred except for the project; or
(B) necessarily and directly incurred in developing
the work scope of the project under this section.
(g) Appropriation.--In addition to amounts otherwise available,
there are appropriated to the Secretary for fiscal year 2027, out of
any money in the Treasury not otherwise appropriated, to remain
available until expended, $10,000,000,000 to carry out the pilot
program established under this section, of which not more than 3
percent shall be available for administrative expenses. The Secretary
may transfer amounts made available under this subsection to the
Administrator to carry out the pilot program.
(h) Exclusions.--No portion of the funds made available under
section 48103 of title 49, United States Code, shall be made available
for implementation of this section.
(i) Briefing.--Not later than 1 year after establishing the pilot
program, the Secretary shall brief the appropriate committees of
Congress on the status of the pilot program.
SEC. 4. AIR TRAFFIC CONTROL IMPROVEMENTS.
(a) In General.--In addition to amounts otherwise available, there
are appropriated to the Administrator for fiscal year 2027, out of any
money in the Treasury not otherwise appropriated, to remain available
until expended--
(1) $300,000,000 to consolidate terminal air traffic
control facilities;
(2) $7,200,000,000 to implement a common automation
platform and a common controller workstation;
(3) $2,000,000,000 to implement cloud computing
infrastructure, including necessary telecommunications
infrastructure, supporting the national airspace system; and
(4) $600,000,000 to implement strategic air traffic flow
management technologies.
(b) Transfer Authority.--The Administrator may transfer amounts
made available under a paragraph of subsection (a) to any other
paragraph of that subsection.
(c) Quarterly Reporting.--Not later than 180 days after the date of
enactment of this section, and every 90 days thereafter, the
Administrator shall submit to the appropriate committees of Congress a
report that describes any expenditures of amounts made available under
this section.
SEC. 5. TRANSFER AUTHORITY TO IMPLEMENT THE BRAND-NEW AIR TRAFFIC
CONTROL SYSTEM.
(a) In General.--The Administrator may transfer amounts made
available under a paragraph of section 40003(a) of Public Law 119-21,
to any other paragraph of that section.
(b) Reporting.--The Administrator shall describe any transfers
under this section in reports submitted under section 40003(b) of
Public Law 119-21.
SEC. 6. TERMINAL AIR TRAFFIC CONTROL AND AIRPORT IMPROVEMENTS.
(a) In General.--In addition to amounts otherwise available, there
are appropriated to the Administrator for fiscal year 2027, out of any
money in the Treasury not otherwise appropriated, to remain available
until expended--
(1) $2,000,000,000 to construct, replace, and improve
terminal air traffic control facilities, including activities
using digital tower technologies;
(2) $3,000,000,000 to make discretionary grants for
projects as authorized by subchapter I of chapter 471 of title
49, United States Code, and subchapter I of chapter 475 of such
title; and
(3) $5,000,000,000 to make discretionary grants for airport
terminal development projects that address the aging
infrastructure of the Nation's airports.
(b) Airport Improvement Funds.--Amounts made available under
subsection (a)(2) shall not be subject to apportionment formulas,
special apportionment categories, or minimum percentages under chapter
471 of title 49, United States Code, and shall not be subject to any
limitation on obligations for the Grants-in-Aid for Airports program
set forth in any Act.
(c) Airport Terminal Funds.--
(1) In general.--A grant from amounts made available under
subsection (a)(3) shall be treated as having been made pursuant
to the Secretary's authority under section 47104(a) of title
49, United States Code.
(2) Eligibility.--For grants from amounts made available
under subsection (a)(3), the Administrator may--
(A) make an award for a project at any airport that
is eligible to receive a grant from the discretionary
fund under section 47115(a) of title 49, United States
Code; and
(B) consider projects that qualify as ``terminal
development'', as that term was used in the Airport
Terminal Program in title VIII of division J of the
Infrastructure Investment and Jobs Act (Public Law 117-
58; 135 Stat. 1418).
(3) Federal share.--The Federal share of the cost of a
project carried out from funds made available under subsection
(a)(3) shall be--
(A) with respect to large hub airports and medium
hub airports, 80 percent; and
(B) with respect to small hub airports, nonhub
airports, and airports that are not primary airports,
95 percent.
(4) Administration.--Of amounts made available under
subsection (a)(3), not more than 3 percent shall be available
for administrative expenses of making and overseeing grants
under that subsection.
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