FAA privatization plan transfers ATC to nonprofit corporation

On Mar. 9, 2025, the White House memorandum directed the Department of Transportation to draft a plan to spin off FAA air-traffic control into a nonprofit corporation within 180 days. (Source: White House memo text)

The proposal seeks to cut federal spending by $11 billion and to fund operations through dedicated user-fee bonds, which would shift risk from taxpayers to travelers and airlines and could raise per-flight fees. (Source: White House memo text)

The memo proposes consolidating 22 legacy regional ATC centers into six super-centers, projecting $2 billion in annual savings. (Source: AP modernization piece)

First-phase implementation costs are estimated at $12.5 billion to build six super-centers and upgrade radar systems. (Source: AP modernization piece)

The memorandum cites Canada’s NAV CANADA as a proof-of-concept that user-fee funding can sustain air-traffic control. (Source: NPR ATC story)

Opponents warn the plan may violate the Origination Clause by sidestepping congressional taxation authority and may transfer an “inherently governmental function” in contravention of OMB Circular A-76. (Sources: CRS memo; OMB Circular A-76)

Under the Congressional Review Act, if Congress disapproves the rule, the administration is permanently barred from issuing a “substantially similar” rule absent new legislation. (Source: Congress.gov CRA overview)

The memo places the new ATC corporation under the FAA Safety Office for regulatory oversight, separating safety functions from operations. (Source: White House memo text)