Transportation Secretary Sean Duffy signaled openness to a new dedicated passenger fee as a means to guarantee consistent funding for Federal Aviation Administration upgrades to the nation's aging air traffic control infrastructure.
Speaking at the American Airlines Safety Management System Industry Forum on April 29, 2026, at the carrier's Robert L. Crandall Campus in Fort Worth, Duffy described the challenges of depending on sporadic appropriations from Congress for long-term modernization projects. He argued that a reliable revenue source would allow continuous improvements rather than risking systems becoming obsolete between major funding infusions.
"I would welcome an opportunity to think through how we could have a small fee that went into us, and I want us to continually upgrade our systems," Duffy told attendees, according to reports from the event that also featured a discussion with American Airlines CEO Robert Isom. He pointed to the September 11 Security Fee, which adds $5.60 to each one-way ticket originating in the United States to support TSA operations, as a potential template, though he offered no proposed dollar amount, schedule for implementation or formal legislative outline.
The suggestion arrives amid an aggressive push to overhaul the U.S. air traffic control system. Congress previously approved $12.5 billion through the One Big Beautiful Bill as an initial down payment to replace outdated equipment, including legacy radar systems, paper flight strips still in use at some facilities, and even older computing technology. Duffy and FAA Administrator Bryan Bedford have highlighted early wins, such as the transition to electronic flight strips at Ronald Reagan Washington National Airport, and have sought additional appropriations estimated around $10 billion in the near term to accelerate software development, tower enhancements and surface surveillance tools.
Officials aim to deliver a transformed, state-of-the-art system within the current administration's timeframe, potentially unlocking greater airspace capacity, fewer delays and improved safety margins. Proponents argue that a dedicated funding stream, insulated from annual budget battles, would better support the multi-year nature of these complex technology integrations and help recruit and retain air traffic controllers by providing them with modern tools.
Aviation industry reactions are likely to be mixed. While many airlines have supported comprehensive ATC reform and recognize the outdated nature of current infrastructure, carriers have traditionally resisted new user fees that could raise ticket prices or add administrative burdens. Any new charge would almost certainly face scrutiny in Congress, where aviation funding mechanisms have long been contentious.
Duffy's appearance at the American Airlines event underscores ongoing collaboration between the Department of Transportation, the FAA and major carriers on both safety initiatives and operational efficiency. The forum focused on safety management systems across the industry.
This early-stage idea reflects broader efforts to reform how America's aviation infrastructure is financed and maintained. With air travel demand continuing to grow, securing sustainable support for modernization has emerged as a priority for the current administration. While no concrete proposal has been submitted, Duffy's comments are expected to prompt further discussion among policymakers, airlines, labor groups and passenger advocates about the future funding framework for the national airspace system.
Cross-checked reporting from multiple outlets confirms the core details of the speech, the comparison to the existing security fee and the surrounding context of the $12.5 billion investment and additional funding requests. No specific aircraft types, regulatory directives or immediate operational disruptions were associated with the announcement.