Trump Administration Awards Government Contract for Air Traffic Control Overhaul

Image: Air traffic control tower with an airplane taking off in the foreground. (Photo Credit: Adobe Stock/Soonthorn)
Image: Air traffic control tower with an airplane taking off in the foreground. (Photo Credit: Adobe Stock/Soonthorn)
Lacey Pfalz
by Lacey Pfalz
Last updated: 9:10 AM ET, Fri December 5, 2025

The U.S. Department of Transportation and FAA released a joint statement today, December 5, announcing that national security and technology company Peraton will be the Prime Integrator of the nation’s air traffic control system modernization plan. 

Peraton is a security company with previous contracts for President Trump’s Golden Dome project and is owned by private equity firm Veritas Capital, which has secured hundreds of millions in defense funding from Israel in past months and has partnered closely with DOGE. Sixty percent of Veritas’ revenue comes from government agencies. 

“We are thrilled to be working with Peraton because they share President Trump's drive to modernize our skies safely at record speed,” said U.S. Transportation Secretary Sean P. Duffy. “Working together, we are going to build on the incredible progress we’ve already made and deliver a state-of-the-art air traffic control system that the American traveling public — and our hard-working air traffic controllers — deserve.”

The new air traffic control system was provided $12.5 billion for the upgrade from Trump’s One Big Beautiful Bill, which the FAA and DOT are now calling a “down payment” after Transportation Secretary Duffy mentioned he wanted the government to pay another $19 billion towards the modernization plan. 

Now FAA Acting Administration Bryan Bedford is asking for $20 billion more.

According to the DOT’s release, the government contract is designed to reward Peraton’s performance and penalize it for delays to “incentivize smart usage of the taxpayer dollar.”

The plan is estimated to be completed in three years, by the end of 2028. 

So what will Peraton do? The company will aid the DOT and FAA in replacing core infrastructure like telecommunications networks, radar, software and hardware to bring the air traffic control system up-to-date: something the previous administration estimated would take ten years or more. 

Airlines for America, the corporate association for the nation’s major airlines, praised the announcement, with President and CEO Christopher T. Sununu saying, “U.S. airlines are deeply appreciative of President Trump's leadership and vision. We look forward to working with the Administration as we continue to advocate for additional funding for staffing and technology to fulfill President Trump's vision of a new golden age of air travel.”


For the latest travel news, updates and deals, subscribe to the daily TravelPulse newsletter.

Topics From This Article to Explore

More From TravelPulse

Related Videos

Lacey Pfalz

Lacey Pfalz

Senior Editor, News & Features

Lacey Pfalz is Associate Editor at TravelPulse. She's a passionate advocate of responsible travel and believes the best travel experiences happen outside of a planned itinerary. Lacey currently lives in rural Wisconsin. She can be reached at [email protected].

Grow Your Travel Business With Certified Courses

Travel Agent Academy
Travel Agent Academy
Majestic Resorts Specialist ProgramDiscover all-inclusive luxury at Majestic Resorts in paradise.
Travel Agent Academy
Travel Agent Academy
Los Cabos Specialist ProgramSell the magic of Los Cabos: luxury, adventure, and endless sunshine.
Travel Agent Academy
Travel Agent Academy
Allianz Specialist ProgramProtect every journey with Allianz Partners Travel Insurance.
Travel Agent Academy
Travel Agent Academy
Majestic Resorts Specialist ProgramDiscover all-inclusive luxury at Majestic Resorts in paradise.
Travel Agent Academy
Travel Agent Academy
Los Cabos Specialist ProgramSell the magic of Los Cabos: luxury, adventure, and endless sunshine.
Travel Agent Academy
Travel Agent Academy
Allianz Specialist ProgramProtect every journey with Allianz Partners Travel Insurance.

Don't Miss These Travel Agent Events and Trainings

Upcoming Webinar
ALG Vacations® is Powering Up Fall with PartnershipTuesday, September 8, 2026
2:00pm Eastern
At ALG Vacations®, partnership means deliver smarter tools, stronger resources, and more opportunities...
Upcoming Webinar
Sell More Great Lakes Cruises with Victory Cruise LinesWednesday, September 9, 2026
2:00pm Eastern
Join Cris Desouza, VP of Sales, and Barbara Davis, Director of Sales, for an inside look at what’s new...
Upcoming Webinar
Beyond the Ship: Maximizing Pre and Post Cruise ExperiencesThursday, September 10, 2026
2:00pm Eastern
Discover how to enhance the cruise experience with strategic pre and post cruise planning. Learn how...
Upcoming Webinar
ALG Vacations® is Powering Up Fall with PartnershipTuesday, September 8, 2026
2:00pm Eastern
At ALG Vacations®, partnership means deliver smarter tools, stronger resources, and more opportunities...
Upcoming Webinar
Sell More Great Lakes Cruises with Victory Cruise LinesWednesday, September 9, 2026
2:00pm Eastern
Join Cris Desouza, VP of Sales, and Barbara Davis, Director of Sales, for an inside look at what’s new...
Upcoming Webinar
Beyond the Ship: Maximizing Pre and Post Cruise ExperiencesThursday, September 10, 2026
2:00pm Eastern
Discover how to enhance the cruise experience with strategic pre and post cruise planning. Learn how...