SenateS. 5572119th Congress

Modern Skies Act

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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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