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September 29, 2025 Observations and Lessons Learned From OIG Reviews of theNext Generation Air Transportation System Contents Memorandum1Summary3Background3FAA Is Delivering a Less Transformational NextGen Than OriginallyEnvisioned, Resulting in Reduced Benefits5Many Key Programs and Capabilities Are Over Budget and Delayed Until2030 or Beyond9Lessons Learned From FAA’s NextGen Challenges Can Inform FutureModernization Efforts12Conclusion17Exhibit A.Key NextGen Programs, Capabilities, and Terminology18Exhibit B.OIG NextGen and Related Audit Reports20 Memorandum Subject:INFORMATION: Capstone Memorandum: Observations and Lessons LearnedFrom OIG Reviews of the Next Generation Air Transportation System Assistant Inspector General for Aviation Audits Federal Aviation Administrator The Federal Aviation Administration (FAA) is charged with safely operating theworld’s busiest and most complex airspace system, managing over 44,000scheduled flight operations and safely transporting millions of passengers to theirdestinations each day. In 2003, FAA launched one of the most ambitiousinfrastructure projects in U.S. history—the Next Generation Air TransportationSystem (NextGen), an estimated $36 billion-dollar joint effort between FAA andairlines to modernize our Nation’s aging air transportation system by 2025.1Through NextGen, FAA aimed to develop and implement a series of complexprograms and capabilities that would overhaul the National Airspace System(NAS) to increase airspace capacity, reduce flight delays and congestion, andprovide safer and more efficient air traffic management. However, while FAA hadinvested over $15 billion in NextGen as of the end of 2024 and delivered newcapabilities and benefits, some programs have yet to be fully implemented, andachieving NextGen’s overarching goals remains challenging. The Department of Transportation (DOT) Office of Inspector General’s (OIG)mission is to enhance DOT’s programs and operations by conducting objectiveinvestigations and audits on behalf of the American public. Since 2006, we havereported to Congress, the Department, and the American public on FAA’sNextGen efforts. Through 50 audit reports addressing NextGen and associatedprograms, as well as testimony statements before Congress, correspondence, andmore, we have highlighted longstanding challenges and barriers that limitedFAA’s progress in delivering NextGen capabilities, such as the Agency’s lack of realistic plans, budgets, and expectations or clearly identified benefits forstakeholders. Now, in 2025—the year in which FAA and Congress originally envisionedNextGen to be complete—FAA’s modernization efforts have reached a majorturning point. The FAA Reauthorization Act of 20242mandated that FAAoperationalize all key NextGen programs and terminate the Office of NextGen bythe end of 2025. However, as we reported in 2024,3FAA will continue to deployNextGen systems beyond 2025 and other key capabilities beyond 2030.Furthermore, the Secretary of Transportation recently announced a $31.5 billionplan for FAA to build the Brand New Air Traffic Control System, a state-of-the-artsystem that will replace core infrastructure including automation, communication,surveillance, and facilities. These plans include accelerating deployment of severalkey NextGen programs to be complete by 2028. Given the upcoming termination of FAA’s Office of NextGen and theDepartment’s ambitious new infrastructure modernization plans, we haveprepared this capstone memorandum to summarize common themes from ourextensive NextGen body of work. Our aim is to present an overview of (1) thestate of NextGen overall and its expected benefits, (2) the status of key programsand capabilities, and (3) some of the major challenges and lessons learned thatcan inform FAA’s continued modernization efforts. OIG remains committed to supporting FAA and DOT in effectively and efficientlymeeting its goals and delivering a safer, more efficient air transportation systemfor the traveling public. If you have any questions concerning this memorandum,please contact me or Jay Borwankar, Program Director. cc:The SecretaryDOT Audit Liaison, M-1FAA Audit Liaison, AAE-100 Summary Lengthy delays and cost growth have been a recurring feature of FAA’smodernization efforts through the course of NextGen’s over 20-year lifespan. FAAfaced significant challenges throughout NextGen’s development andimplementation phases that resulted in delaying or reducing benefits anddelivering fewer capabilities than expected. While NextGen programs andcapabilities have delivered some benefits in the form of more efficient air trafficmanagement and reduced flight delays and airline operating costs, as ofDecember 2024, FAA had achieved only about 16 percent of NextGen’s totalexpected benefits. Achieving the remaining promised benefits will depend onFAA continuing to implement planned NextGen capabilities, as well as airlinesequipping their aircraft with required avionics. Overall, FA