Innovation & Tech

One Overloaded 1980s-Era System Grounded Every U.S. Flight

A nationwide groundstop traced to an overloaded Time-Division Multiplexing system revived questions about $31.5 billion in stalled FAA modernization and 1960s copper wiring.

By Nathan Brooks

4 min read

The FAA’s IT troubles are far bigger then AI
The FAA’s IT troubles are far bigger then AIAI-generated

What's News

  • A nationwide groundstop on Friday was caused by an overloaded Time-Division Multiplexing analog system affecting TRACON telecommunications.
  • Duffy says the FAA received $15 billion for modernization over 25 years; the current overhaul estimate is $31.5 billion.
  • A September 2026 GAO report found only 2,560 of 5,170 aging copper wires replaced; some wiring dates to the 1960s.
  • The White House asked Congress on November 13 for $30.1 billion for aviation infrastructure, including $10.1 billion for ATC technology.
  • Duffy's 2028 deadline covers only phase one of modernization, with no timetable for phase two.

A single overloaded analog system grounded every airline flight in the United States late Friday night, and Transportation Secretary Sean Duffy says the fix will take billions more from Congress. The culprit wasn't AI, hackers or a contractor mistake. It was a Time-Division Multiplexing (TDM) system — an arcane method of processing data signals over a network — that buckled under load and took down telecommunications used by TRACONs, the facilities that direct traffic near airports.

The outage interrupted weekend travel and wrecked schedules nationwide. Social media filled with speculation: some blamed a new AI system the FAA had integrated earlier in the week, others pointed at foreign adversaries. Contractors moved fast to distance themselves, including Microsoft. Officials say there's no evidence of anything nefarious.

Duffy told reporters the damage stopped where modernization had started. Systems already upgraded to internet protocol-based platforms never went dark. "This is all the old legacy equipment," he said Friday. "All of the new equipment that's been deployed did not go down."

What does this change for airlines and travelers?

Not much yet — and that's the point. The FAA has collected $15 billion for modernization over the past 25 years, Duffy noted, with little to show for it. On Friday he pressed Congress to move past partisan politics and fund a real overhaul. "It's not red, it's not blue, it's not Democrat, it's not Republican, it's American," he told reporters. "Give us the money to fix it."

For carriers, the practical read is simple: the network that carries their passengers still runs on gear that predates most of their fleets. Until the money flows, Friday-style groundstops remain a live tail risk.

Friday wasn't the first, and the backlog is deep

In 2023, contractors accidentally deleted files and knocked the Notice to Airmen system (NOTAM) — which alerts pilots to hazards in U.S. airspace — offline, halting flights nationwide. The modernization effort since then has moved at a snail's pace. Contract paperwork obtained last year showed NOTAMs weren't even stored exclusively in a digital format. And the FAA was still working on a basic ambition: making sure upgrades to some systems didn't disrupt all of air traffic control.

"Everyone will say, 'well, there's backups in place,'" Shawn Pruchnicki, a former pilot at Ohio State's Center for Aviation Studies, told FedScoop. "But we've also seen time and time again where those things have been said and things have gone horribly wrong."

Old wires, old disks, unfinished overhauls

The hardware record is stark. In April 2025, a burnt copper wire triggered a communications blackout at Newark Liberty International Airport: controllers lost radar and radio contact with approaching planes for roughly 90 seconds, and the incident triggered weeks of delays and cancellations. Another communications failure followed in May.

Some FAA copper wiring dates to the 1960s. A September 2026 Government Accountability Office report found the agency has replaced just 2,560 of its 5,170 aging copper wires — under half. NextGen, the satellite-and-digital overhaul launched in 2007, remains unfinished nearly two decades later, hampered by years of inadequate funding. Earlier this month, the FAA announced it had finally begun retiring floppy disks.

Duffy didn't sugarcoat it. "What we're doing is hard and it hasn't happened in the past because it is hard. But I'll tell you by doing nothing, you inject way more risk into the system," he said Friday. "To use 1980s technology, 1990s software … 1970s radar that we don't even make parts for anymore, to have an old network configuration from the 1980s versus re-networking the air traffic control system through the FAA, I believe that should be a priority."

The price tag keeps climbing

Duffy took office promising an overhaul. In May 2025 he unveiled a plan to rebuild the air traffic control system by 2028, replacing radars and radios; Congress approved an initial $12.5 billion. Two months later, Duffy told lawmakers the full cost had jumped to an estimated $31.5 billion. Even the 2028 deadline covers only phase one — there's no timetable for phase two, which includes new software to track aircraft and manage traffic.

The GAO's September 2026 report put it flatly: the FAA "doesn't have a lifecycle cost estimate or master schedule for related projects," gaps that "could end up causing air traffic disruptions or prolonging reliance on severely outdated systems." These tech failures compound the FAA's other crises: overworked control offices and a controller recruitment shortfall.

On the Hill, Sen. Eric Schmitt's $30 billion Modern Skies Act — funding everything from ATC software to airport terminals — hasn't left committee. On November 13, the White House asked Congress for another $30.1 billion for aviation infrastructure, including $10.1 billion specifically for air traffic control technology.

Asked whether Friday's outage could happen again, Duffy was blunt: "I can't build things if I don't have money." For an industry pricing risk, that's the line to watch — until the wire count and the budget gap shrink together, the next groundstop is a matter of when, not whether.

Original: x.com

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Nathan Brooks

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News editor covering regulation, policy and their impact on entrepreneurship, startups and venture funding at Business Bearings.

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