Strategic Aerospace Alliance Policy Update: Key Aerospace Policy, Regulatory, and Funding Issues for the Trump Administration and the 119th Congress

With the start of the new Congress and incoming Trump Administration, Dan Elwell, Holly Woodruff Lyons and I put together a brief overview of the key civil & commercial aviation and space legislative and policy issues that will be keeping the administration and committees busy in 2025.

As we saw over the holidays, emerging aviation safety, counter-UAS capabilities and international incidents can quickly dominate headlines and hearings. Here are our best predictions on the key policy issues for the year ahead:

1. Implementation of the Bipartisan?FAA Reauthorization Act of 2024:

·?????? Implementation of the Reauthorization will be a priority for the House and Senate authorizing committees, particularly the delivery of reports, initiation of mandated rulemakings, and addressing workforce issues.

·?????? The attention the committees will be divided, with the House Committee focusing on a Surface Transportation Reauthorization bill, and the Senate Committee working to confirm Trump nominees and review potential ways to enhance the efficiency and reliability of the air traffic control (ATC) system.

·?????? The departure of the FAA Administrator and Deputy Administrator in January will leave a leadership vacuum that will impact implementation. The next acting administrator will be the 5th FAA leader in the last 6 years.

2. Prioritization of Air Traffic System Upgrades and Replacement, and maybe even Reform:

·???????In 2023, a series of high profile “near misses” at airports led to calls for upgrading the legacy ATC systems.??FAA turned to new warning equipment at busy airports, but any additional technologies could be very costly.?

·???????In a September 2024 report, the GAO found that a significant portion of ATC systems are unsustainable or approaching that status.??The cost of replacing the FAA’s outdated ATC systems could exceed $8 billion.

·???????Although there is bipartisan support for upgrading the ATC system, the issue of how to pay is unresolved.[1]

·???????Discussions of more fundamental changes to the ATC system are also likely with both President Trump and the incoming Senate Commerce Committee Chair suggesting the need for comprehensive reforms.

3. Continued focus on Aircraft Certification, Safety & Quality:

·???????The FAA and Congress have devoted significant oversight into aircraft manufacturing safety and quality, including implementation of?ACSAA[2]?and investigating the loss of a door plug on a new Boeing 737 MAX.

·???????While extremely safe, the FAA wants to reduce commercial and general aviation fatalities by 50% by 2025.

·???????The ongoing disclosures of issues among aircraft manufacturers and their suppliers will keep the focus on enhancing safety standards and rigorous oversight of manufacturers. The FAA has also imposed production limits on Boeing’s 737 MAX line until certain goals are met. This remains a key challenge across the industry.

·???????While Boeing and some of its suppliers are working to address their challenges, other manufacturers want to ensure that FAA and Congressional oversight does not result in unintended consequences for the industry.

4. Finding a Path forward on Appropriations for FY25 and FY26:

·???????The current Continuing Resolution provides funding at the FY24 levels through March 14th.??Congress and the new Administration will need to resolve FY25 funding through September 30th.

·???????The?FY25 National Defense Authorization Act?authorizes?$895 billion in DoD discretionary spending and $26.5 billion in mandatory spending, but the?appropriations?numbers could fluctuate based upon negotiations.

·???????The House and Senate were far apart on Non-Defense Spending levels in their FY25 appropriations bills.??

·???????The impact of Trump’s Department of Government Efficiency (DOGE), remains to be seen, especially its recommended Federal spending cuts and whether Congress will agree.

5. Accelerating Certification of New Aircraft and Advanced Air Mobility:

·???????FAA will face challenges certifying the Next Generation Single Aisle aircraft (advanced structures, avionics, sensors, and power/propulsion systems); will need experts to avoid adverse impacts to global competitiveness.?

·???????Certification and integration of Unmanned Aircraft Systems (UAS) and electric Vertical Takeoff and Landing (eVTOL) aircraft will be a high priority. As the market matures, FAA must establish regulatory pathways.

·???????The?FAA Reauthorization Act?directs the FAA to finalize certification standards for UAS and?eVTOL aircraft, which the administration released in October 2024.??Many more mandates for new entrants await FAA action.

6. Addressing Aircraft Threats: Missiles, Spoofing, Jamming, Cybersecurity, and Counter-UAS:

·???????In 2024, a milestone was reached when commercial aircraft became more likely to be targeted by hostile anti-aircraft missiles than to experience accidents due to pilot error or mechanical failure.?

·???????GPS spoofing and jamming incidents have increased, particularly in conflict zones, and regulators face increased pressure to develop redundant, resilient navigation systems.

·???????Should a U.S. aircraft experience a serious near miss or a fatal accident resulting from any of these threats it could result in a major geopolitical issue for the Trump Administration.?

·???????U.S. manufacturers, including avionics and sensor companies, are developing anti-jamming and anti-spoofing technologies due to growing threats and anticipated regulatory requirements. The?FAA Reauthorization?gives the FAA sole authority over ATC and avionics cybersecurity.

·???????Criminal or terrorist use of drones to attack crowded venues or critical infrastructure has been an ongoing concern. Expect Congress and the Trump Administration to revisit authorities to mitigate the threat.??

7. Reauthorizing Spectrum Auction authorities as part of Budget Reconciliation revenue:

·???????The reauthorization of the federal government’s spectrum auction authority and direction on how to spend funds raised through the sale of federally used spectrum remains a priority.??

·???????Previous reauthorization efforts stalled due to concerns from the DoD and defense contractors over potential harmful impacts of reducing cleared spectrum for national security radars and weapons systems.

·???????The Commerce Committee, which has jurisdiction over spectrum auctions and proceeds, as well as the House Energy & Commerce Committee will need to determine how much spectrum can be authorized for auction given potential impacts to a variety of federal and federally-regulated users, like the DOD and defense contractors as well as FAA-certified avionics and radars and FAA air traffic radars and systems.??

·???????New spectrum auctions could raise tens of billions of dollars as part of the anticipated Budget Reconciliation process, for Republican priorities, to generate budget savings, or to pay for outdated FAA ATC systems.

8. Oversight and Funding for FAA’s Commercial Space Transportation:

·???????Since the 1990’s, the FAA's role in licensing commercial space launches and reentries and overseeing payload reviews has grown significantly. However, as the pace of launches increased from a few dozen to over 100 each year, the Office of Commercial Space Transportation (AST) has struggled to keep up.

·???????Unlike the Air Traffic Organization (ATO), AST does not receive revenue from the Aviation Trust Fund and instead relies on discretionary funding, which has not kept pace with the expansion of the space sector.??Like other new entrants, the commercial space sector does not contribute to the operation of the FAA.

·???????Initiatives during the first Trump Administration led to regulatory reforms to accelerate space launch approvals, however, some still criticize the speed of licensing and the lack of regulatory clarity.

·???????Some in Congress seek increased oversight of the FAA’s licensing processes, wanting faster, more flexible approvals. There have also been calls for new funding mechanisms, (additional fees) for certification efforts.

·???????The integration of space launches into the NAS remains a complex challenge, particularly with calls for "launch on demand" capabilities, which could disrupt ATC and raise logistical and regulatory concerns.

·???????Congress and the new Administration will need to balance the needs of a rapidly growing commercial space industry with a broad group of aviation stakeholders that have concerns about airspace impacts.?

9. Reauthorizing NASA’s Aeronautics, Exploration & Human Spaceflight programs:

·???????There is remarkable bipartisan support of NASA’s missions to advance aeronautics R&D, maintain a continuous human presence in low Earth orbit, and return to the Moon, a precursor for missions to Mars.??

·???????A bipartisan NASA reauthorization bill was nearly included in the recent CR package.??A priority for both incoming Chair Cruz and incoming House Science, Space & Technology Committee Chair Brian Babin (R-TX) will be to pass a new?NASA Reauthorization Act?in 2025.

·???????Since 2015, there has been increased support for NASA Aeronautics, driven by new X-Plane aircraft, engine flight demonstrators for hybrid-electric and high-durability engines, supersonic flight, and a new single aisle truss-brace wing configuration, all aimed at maturing technologies for advanced and efficient flight

·???????NASA’s Artemis Program currently provides the world’s only crewed transportation system to the Moon, but China is spending and working to quickly launch a comparable lunar crew capability, which will likely continue to drive bipartisan support in Congress for successful Artemis program missions.?

·???????NASA continues to make progress toward crewed flights to the Moon on the Artemis II and Artemis III missions planned for 2026 and 2027, following a successful uncrewed test flight in late 2022.??

·??????In low Earth orbit (LEO) spaceflight, there has been bipartisan consensus in support of on-ramping new commercial and robotic spaceflight companies into crew and cargo services to the International Space Station (ISS), lunar precursor missions, and other science and data communications programs.??Chairman Cruz successfully led efforts in Congress to extend the ISS, which marks its 25th?year of operation this year, through at least 2030 to provide additional time for the development of future low Earth orbit (LEO) human platforms.?

For more information, please visit www.strategicaerospacealliance.com.

[1]This may come up during the FY26 budget reconciliation?which “…is a two-stage process in which reconciliation instructions are included in the budget resolution directing the appropriate committees to develop legislation achieving the desired budgetary outcomes, and the resultant legislation (usually incorporated into an omnibus bill) is considered under expedited procedures ….” See: CRS Report RL30458, “The Budget Reconciliation Process: Timing of Legislative Action” (2016).

[2]?Aircraft Certification, Safety, and Accountability Act of 2021.