This Act may be cited as the Modern Skies Act.

In this Act: (1) Administrator The term Administrator means the Administrator of the Federal Aviation Administration. (2) Appropriate committees of Congress The term appropriate committees of Congress means— (A) the Committee on Commerce, Science, and Transportation of the Senate; and (B) the Committee on Transportation and Infrastructure of the House of Representatives. (3) Ground support equipment The term ground support equipment means service and maintenance equipment used at an airport to support aeronautical operations and related activities. (4) Secretary The term Secretary means the Secretary of Transportation. (5) Other terms The terms air carrier, airport, large hub airport, medium hub airport, nonhub airport, primary airport, public-use airport, small hub airport, and terminal development have the meanings given such terms in section 47102 of title 49, United States Code.

(a) Establishment of pilot program The Secretary shall establish and carry out a pilot program (referred to in this section as the pilot program), under which the Secretary shall issue grants to the sponsors of not more than 3 transitional hub airports for the rehabilitation and modernization of such airports. (b) Transitional hub airport For purposes of this section, a transitional hub airport is an airport that— (1) was classified as a medium hub airport as of the date of enactment of this Act; (2) includes a primary terminal building constructed before January 1, 1990, that— (A) remains in active passenger service; and (B) continues to serve as the principal commercial passenger terminal of the airport; (3) did not complete a comprehensive redevelopment or replacement of its principal commercial passenger terminal on or after January 1, 1990; and (4) has a terminal modernization, rehabilitation, or reconstruction project that— (A) is included in a capital improvement program of the sponsor of the airport; (B) has completed environmental review in accordance with the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.U.S. Code — Title 42, Section 4321 and followingView official source on GovInfo); and (C) has entered the final design stage. (c) Application A sponsor of a transitional hub airport shall submit to the Secretary, in such form and manner as the Secretary may specify, an application for a grant under the pilot program, including a demonstration, to the satisfaction of the Secretary, of— (1) the unique or historic architectural features of the terminal building that the airport sponsor proposes to preserve in conducting a prospective project under the pilot program; (2) the expected economic benefit of the prospective project to the surrounding area; (3) the extent to which the prospective project will— (A) enhance competition among incumbent air carriers; (B) facilitate air service by new entrant air carriers; and (C) facilitate new or improved air service between the airport and small communities; (4) the extent to which the prospective project will model innovative airport design principles that similarly situated airports might replicate in future projects for rehabilitation and modernization; (5) the demonstrable need for the prospective project to maintain the airport’s long-term viability and significance to the national integrated system of public-use airports; (6) project readiness; (7) the reasonable estimated costs of the prospective project; and (8) such other factors as the Secretary, in the sole discretion of the Secretary, determines to be appropriate. (d) Use of funds (1) Eligible activities A sponsor of a transitional hub airport selected at the sole discretion of the Secretary to participate in the pilot program may use the funds awarded under the pilot program to carry out any of the following activities at such airport: (A) Terminal development. (B) Demolition, construction, and improvement of terminal buildings or portions thereof. (C) Installation of utility, energy, baggage conveyor systems, and other systems for use on the property of such airport that are reasonably likely to support long-term usability and resilience. (D) Improvements to terminal buildings that are reasonably likely to improve passenger circulation and terminal capacity. (E) Replacement of obsolete ground support equipment and other airside components owned by the airport sponsor. (F) Improvements to cargo and logistics facilities on the property of such airport to expand cargo handling capacity. (2) Terms and conditions The Secretary may impose any additional terms or conditions regarding the use of the funds awarded under the pilot program that the Secretary, in the sole discretion of the Secretary, determines appropriate. (e) Federal share The Federal share of costs for the project of a transitional hub airport participating in the pilot program shall not exceed 90 percent of the total cost of the project specified in an application for a grant under this section. (f) Other administrative provisions (1) Eligibility The Secretary may issue a grant under the pilot program to the sponsor of a transitional hub airport for an eligible project that complies with— (A) all applicable Federal requirements governing procurement funded by Federal financial assistance; or (B) the same policies and procedures such airport sponsor is required to follow for any procurement with non-Federal funds. (2) Certain prior costs as allowable costs The Secretary may decide that a project cost under this section incurred before the date on which the grant agreement is executed is allowable if the cost is— (A) necessarily incurred in formulating or preparing for a project under this section, including costs incurred for field surveys, plans and specifications, property interests in land or airspace, utility relocation, work site preparation, and administration or other incidental items that would not have been incurred except for the project; or (B) necessarily and directly incurred in developing the work scope of the project under this section. (g) Appropriation In addition to amounts otherwise available, there are appropriated to the Secretary for fiscal year 2027, out of any money in the Treasury not otherwise appropriated, to remain available until expended, $10,000,000,000 to carry out the pilot program established under this section, of which not more than 3 percent shall be available for administrative expenses. The Secretary may transfer amounts made available under this subsection to the Administrator to carry out the pilot program. (h) Exclusions No portion of the funds made available under section 48103 of title 49, United States Code, shall be made available for implementation of this section. (i) Briefing Not later than 1 year after establishing the pilot program, the Secretary shall brief the appropriate committees of Congress on the status of the pilot program.

(a) In general In addition to amounts otherwise available, there are appropriated to the Administrator for fiscal year 2027, out of any money in the Treasury not otherwise appropriated, to remain available until expended— (1) $300,000,000 to consolidate terminal air traffic control facilities; (2) $7,200,000,000 to implement a common automation platform and a common controller workstation; (3) $2,000,000,000 to implement cloud computing infrastructure, including necessary telecommunications infrastructure, supporting the national airspace system; and (4) $600,000,000 to implement strategic air traffic flow management technologies. (b) Transfer authority The Administrator may transfer amounts made available under a paragraph of subsection (a) to any other paragraph of that subsection. (c) Quarterly reporting Not later than 180 days after the date of enactment of this section, and every 90 days thereafter, the Administrator shall submit to the appropriate committees of Congress a report that describes any expenditures of amounts made available under this section.

(a) In general The Administrator may transfer amounts made available under a paragraph of section 40003(a) of Public Law 119–21Public Law 119-21View official source on GovInfo, to any other paragraph of that section. (b) Reporting The Administrator shall describe any transfers under this section in reports submitted under section 40003(b) of Public Law 119–21Public Law 119-21View official source on GovInfo.

(a) In general In addition to amounts otherwise available, there are appropriated to the Administrator for fiscal year 2027, out of any money in the Treasury not otherwise appropriated, to remain available until expended— (1) $2,000,000,000 to construct, replace, and improve terminal air traffic control facilities, including activities using digital tower technologies; (2) $3,000,000,000 to make discretionary grants for projects as authorized by subchapter I of chapter 471 of title 49, United States Code, and subchapter I of chapter 475 of such title; and (3) $5,000,000,000 to make discretionary grants for airport terminal development projects that address the aging infrastructure of the Nation’s airports. (b) Airport improvement funds Amounts made available under subsection (a)(2) shall not be subject to apportionment formulas, special apportionment categories, or minimum percentages under chapter 471 of title 49, United States Code, and shall not be subject to any limitation on obligations for the Grants-in-Aid for Airports program set forth in any Act. (c) Airport terminal funds (1) In general A grant from amounts made available under subsection (a)(3) shall be treated as having been made pursuant to the Secretary’s authority under section 47104(a) of title 49, United States Code. (2) Eligibility For grants from amounts made available under subsection (a)(3), the Administrator may— (A) make an award for a project at any airport that is eligible to receive a grant from the discretionary fund under section 47115(a) of title 49, United States Code; and (B) consider projects that qualify as terminal development, as that term was used in the Airport Terminal Program in title VIII of division J of the Infrastructure Investment and Jobs Act (Public Law 117–58Public Law 117-58View official source on GovInfo; 135 Stat. 1418). (3) Federal share The Federal share of the cost of a project carried out from funds made available under subsection (a)(3) shall be— (A) with respect to large hub airports and medium hub airports, 80 percent; and (B) with respect to small hub airports, nonhub airports, and airports that are not primary airports, 95 percent. (4) Administration Of amounts made available under subsection (a)(3), not more than 3 percent shall be available for administrative expenses of making and overseeing grants under that subsection.