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USDOT unveils historic FAA overhaul to modernize systems, operations

January 28, 2026

The U.S. Department of Transportation is moving forward with a restructuring plan for the Federal Aviation Administration’s (FAA) organizational structure. Officials note the action represents the largest comprehensive reorganization in the FAA’s history, seeking to implement a new strategy to prepare the agency for meeting modern challenges and pursue future opportunities. 

Supported in part by the congressionally approved 2024 FAA Reauthorization – allocating $12.5 billion to modernize the air traffic control (ATC) system and infrastructure – the restructuring effort will implement several new changes and approaches to managing the nation’s airspace network. These include: 

  • Implementing a single safety management system (SMS) and risk management strategy for the agency to more easily and safely share data. 
  • Launching an Airspace Modernization Office to accelerate the installation of a new ATC system. 
  • Creating an Advanced Aviation Technologies office to oversee the integration of cutting-edge technologies and air mobility vehicles into the airspace. 
  • Shifting key leadership posts to permanent positions. 
  • Consolidating the management of finance, IT and human resource divisions under the FAA administrator. 

Flight Plan 2026 has been referenced as a cornerstone of the agency’s efforts to embrace change and tackle future development and policy-making initiatives. Founded on three key principles – people, safety and National Airspace System (NAS) modernization – the plan establishes a series of goals needed to usher in the next generation of reliable, efficient airspace travel and security. 

The new organizational architecture positions the FAA administrator overseeing five offices, while the deputy administrator oversees four. The administrator will be the steward for: 

  • The Administration and Finance Office, which will include the Office of Finance and Management; the Office of Information and Technology; and the Office of Human Resource Management. 
  • The Policy and Legal Office will be responsible for guiding strategic policy, legal, stakeholder engagement and financial assistance functions. It will also contain the newly created safety oversight office. 
  • The Airspace Modernization Office will oversee NAS modernization efforts, including planning, research and development, systems engineering and portfolio management. 
  • The Air Traffic Organization will provide safe, efficient air navigation services. 
  • The Aviation SMS Organization will preside over an agency-wide SMS by centralizing safety management activities under one roof. 

The deputy administrator will oversee the following offices: 

  • The Office of Advanced Aviation Technologies, which will be the designated point for activities related to the integration of Advance Air Mobility, Unmanned Aircraft Systems and Supersonic aircraft technologies. 
  • The Office of Commercial Space Transportation will regulate the U.S. commercial space transportation industry. 
  • The Security and Intelligence Organization will conduct security and intelligence activities. 
  • The Aviation Safety Oversight and Certification Organization will oversee safety measures and certification activities of the former Aviation Safety Organization. 

Photo by Soly Moses from Pexels

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Adam Rollins

Adam Rollins brings his expertise as a Researcher and Writer to the Managing Editor role for several of SPI's key publications, including Government Contracting Pipeline, Texas Government Insider, and the latest addition, Government Market News. With a rich background as a freelance Content Specialist, Adam has honed a passion for learning and information gathering, delving into various industries. His research and writing have spanned a range of topics, from artificial intelligence (AI) technology, conservation, and project outsourcing, to managed IT services and software development.

Holding a bachelor's degree in English from Texas State University, Adam's proficiency in message development is complemented by his robust research skills and seasoned writing experience. These attributes make him an invaluable asset to SPI, ensuring the delivery of insightful and impactful content to the company's clientele.

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