• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
LeadershipDonald Trump

President Trump’s Budget Calls for Privatizing America’s Air Traffic Control

By
Reuters
Down Arrow Button Icon
By
Reuters
Down Arrow Button Icon
March 16, 2017, 10:08 AM ET

President Donald Trump is proposing to shift oversight of the U.S. air traffic control from the federal government to an independent group, according to budget documents released on Thursday.

Trump, who called the U.S. air traffic control system “obsolete” in a meeting with airline executives last month, is proposing $16.2 billion for the Department of Transportation’s discretionary budget for fiscal year 2018, a reduction of 13 percent.

Some Transportation Department budget items are paid through the highway gas tax fund.

The document says Trump’s plan “initiates a multi-year reauthorization proposal to shift the air traffic control function of the Federal Aviation Administration to an independent, non-governmental organization.”

Privatization advocates argue that spinning off air traffic control into a non-government entity would allow for a more efficient system and rapid, cost-effective improvements of technology, in part by avoiding the government procurement process.

Opponents, including some airlines, say the U.S. system is so large that privatization would not save money, and would drive up ticket costs and could create a national security risk. There also are concerns that airlines would dominate the private-company board and limit access to airports by business jets.

The budget would eliminate $175 million in annual funding for the Essential Air Service, a program to support commercial air service to rural airports and end subsidies for Amtrak to operate long-distance train service.

Amtrak would then “focus on better managing” state-supported lines and service in the busy Northeast corridor, the budget document said.

The Trump budget would also eliminate the Obama administration’s “TIGER” grant program, saving $499 million. That program has been used to fund a variety of transportation projects, including high-speed and intracity rail, highway construction and transit bus systems.

The budget calls for cutting the budget of U.S. space agency NASA by 0.8 percent to $19.1 billion. The budget proposes canceling the multi-billion-dollar Asteroid Redirect Mission, but funds development of the Orion crew vehicle and Space Launch System.

The budget calls for expanding public private partnerships. NASA has partnerships with Space Exploration Technologies and other companies.

The budget funds a mission to fly by Jupiter moon Europa, but cancels a multi-billion mission to land on the moon. It would also fund a Mars rover mission in 2020.

The FAA is spending billions to implement “NextGen,” a system that would utilize satellites to monitor aircraft instead of radar and make other changes and has faced implementation challenges.

The FAA said it has spent $7.5 billion on NextGen over the past seven years, which “has resulted in $2.7 billion in benefits to passengers and the airlines to date, and is expected to yield more than $160 billion in benefits through 2030.”

Last month, Trump criticized spending on NextGen, saying the system was “totally out of whack,” over budget and behind schedule.

The FAA handles more than 50,000 flights a day and more than 700 million passengers each year. It spends nearly $10 billion a year on air traffic control funded largely through passenger user fees, and has about 28,000 air traffic control personnel.

Since 1987, several countries have moved responsibility for air traffic control from national civil aviation authorities to independent self-financed providers.

The Government Accountability Office said in a 2016 report that the United States “is generally considered to have the busiest, most complex and safest ATC system in the world.”

About the Author
By Reuters
See full bioRight Arrow Button Icon

Latest in Leadership

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map

© 2025 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.


Latest in Leadership

NewslettersCEO Daily
The CEO trying to revive some of what made GE so special
By Diane BradyJanuary 6, 2026
4 minutes ago
Travel & Leisurework-life balance
Experts are divided on how workers should spend their 5-9: Structure is key for productivity, but can lead to burnout
By Jamie Wilde and Morning BrewJanuary 5, 2026
14 hours ago
SuccessCareer Advice
Blackstone exec says elite Ivy League degrees aren’t good enough—new analysts need to ‘work harder’ and be nice 
By Ashley LutzJanuary 5, 2026
17 hours ago
Left: Greg Abel. Right: Warren Buffett.
Successchief executive officer (CEO)
Meet Greg Abel, the new boss of Berkshire Hathaway—Warren Buffett’s successor started out by selling empty soda bottles for 5 cents and now he’s a billionaire CEO
By Emma BurleighJanuary 5, 2026
18 hours ago
Reid Hoffman
SuccessThe Promotion Playbook
Forget an MBA: Hasbro forces workers to sit through a Monopoly-style board game to see if they’re fit for the C-suite—and it’s a tactic approved by Reid Hoffman
By Preston ForeJanuary 5, 2026
19 hours ago
A man works at a table with a laptop on it. A projector in the background displays code.
AIwork productivity
Experienced software developers assumed AI would save them a chunk of time. But in one experiment, their tasks took 20% longer
By Sasha RogelbergJanuary 5, 2026
19 hours ago

Most Popular

placeholder alt text
Personal Finance
Janet Yellen warns the $38 trillion national debt is testing a red line economists have feared for decades
By Eva RoytburgJanuary 5, 2026
16 hours ago
placeholder alt text
AI
Experienced software developers assumed AI would save them a chunk of time. But in one experiment, their tasks took 20% longer
By Sasha RogelbergJanuary 5, 2026
19 hours ago
placeholder alt text
C-Suite
CEO of $90 billion Waste Management hauled trash and went to 1 a.m. safety briefings—‘It’s not always just dollars and cents’
By Amanda GerutJanuary 3, 2026
3 days ago
placeholder alt text
Future of Work
Bosses are fighting a new battle in the RTO wars: It's not about where you work, but when you work
By Nick LichtenbergJanuary 4, 2026
2 days ago
placeholder alt text
Energy
‘Big Short’ investor Michael Burry says toppling of Venezuela’s Maduro will weaken Russia’s global standing as its oil ‘just became less important’
By Marco Quiroz-GutierrezJanuary 5, 2026
15 hours ago
placeholder alt text
Economy
Under Biden, America got 150 countries to agree a 15% global corporate tax. Under Trump, America gets an exemption
By Fatima Hussein and The Associated PressJanuary 5, 2026
13 hours ago