A new US government audit has found that the Federal Aviation Administration’s NextGen program to modernize the nation’s air traffic control system has delivered only a fraction of the promised benefits, while costs continue to climb and deployment targets slip.
According to a Reuters report citing a Department of Transportation Office of Inspector General (OIG) audit released on October 1, 2025, the FAA has achieved just 16% of the projected benefits from NextGen, despite spending more than $15 billion since the program began in 2003. The watchdog concluded that the modernization effort is years behind schedule, over budget, and less ambitious than initially envisioned.
NextGen, short for Next Generation Air Transportation System, was conceived to replace outdated radar infrastructure with digital and satellite-based tools. It was expected to improve efficiency and safety across the national airspace. The OIG audit, as reported by Reuters, found that many of those benefits remain unrealized.
Several key programs have been pushed to 2030 or later. The FAA has also reduced the number of airports slated to receive upgrades by about 45% and cut back on the scope of program capabilities.
One of the flagship initiatives, the Terminal Flight Data Manager program, was designed to eliminate paper flight strips and move controllers to electronic systems. The automation was intended to streamline operations and reduce delays. The OIG found that the project remains years behind schedule and will not reach a wide range of airports until the 2030s.
The audit also reported that program costs have risen by more than 20%. That increase comes on top of earlier overruns. The OIG concluded that the modernization FAA has delivered so far is narrower in scope, more expensive, and later than the version originally promised.
Despite the challenges, Congress has continued to allocate money to NextGen. In July, lawmakers approved $12.5 billion for ATC modernization. Transportation Secretary Sean Duffy has since called for another $19 billion to move the program forward. The audit’s release is expected to influence how lawmakers approach future funding requests.
Safety concerns
The new audit comes at a time of heightened concern over the safety of the US air traffic system. A series of near misses has drawn public attention, along with a fatal January collision between a US Army helicopter and an American Eagle regional jet that killed 67 people.
The FAA is also facing a shortage of air traffic controllers. According to Reuters, the agency is about 3,500 controllers short of its staffing target. To maintain operations, many controllers are working mandatory overtime and six-day weeks. A government report earlier this year said overtime hours have risen more than 300 percent since 2013, with controllers logging 2.2 million overtime hours in 2024 at a cost of $200 million.
The OIG report, as summarized by Reuters, concludes that the FAA has not met expectations for delivering promised efficiency and safety benefits. It also warns that the agency’s projections for future benefits remain optimistic in light of persistent delays and scaled-back scope.
The FAA has not responded publicly to the audit. Lawmakers are expected to review the findings as part of ongoing debates over funding and oversight.
