Why the FAA’s Largest Reorganization Ever Matters for Drones and Air Taxis

FAA reorganization to pave the way for UAS, AAM airspace integration

By DRONELIFE Features Editor Jim Magill

A major overhaul of the Federal Aviation Administration, which Transportation Secretary Sean Duffy announced on Monday, is expected to pave the way for integrating UAVs into the National Airspace System (NAS), and ensuring that the FFA is ready for the introduction of advanced air mobility (AAM) vehicles, such as flying taxis, in the near future.

In a statement Duffy and FAA Administrator Bryan Bedford said the comprehensive re-organization – the largest in FAA history – would include the launch of an Airspace Modernization Office to oversee the installation of a new air traffic control system and the creation of a new Advanced Aviation Technologies office to oversee the integration of drones, eVTOLs and AAM into the airspace.

Last month, the FAA announced plans to implement a brand-new air traffic control system by the end of 2028. Initial funding for the effort will come from $12.5 billion allocated in the One Big Beautiful Bill, which Congress passed and President Trump signed last year.

“But funding is only one piece of the puzzle. With these critical organizational changes, the FAA can streamline the bureaucracy, encourage innovation, and deliver a new air traffic control system,” Duffy said in the statement.

Aviation experts for years have decried the FAA’s problems with labor shortages, aging technology and lack of adequate funding to make the upgrades needed for future growth. In September 2024  a U.S. Government Accountability Office study found that “over the past several decades, FAA has been experiencing challenges with aging [Air Traffic Control] systems. These challenges are due to, among other things, availability of parts, growing airspace demand and expanding mission needs.”

The FAA’s new structure is expected to help the agency implement its mission statement, Flight Plan 2026, which calls for the FAA to resolve hiring bottlenecks that have led to a critical shortage of air traffic controllers and to boost controller rants by enrolling 2,200 trainees.

“It’s important that we have the right people in the right places to do the best work possible,” Bedford said. “These actions will put permanent leaders in place who embrace innovation, share safety data and insights freely and are focused on deploying a brand-new air traffic control system all while integrating key innovation technologies into the new National Airspace System.”

Under the new structure, the Office of Advanced Aviation Technologies will become the designated point for activities related to the integration of advanced aviation technologies including AAM, unmanned aircraft systems and supersonic aircraft in the United States. The creation of the new office is consistent with the goals expressed in the FAA Reauthorization Act of 2024 and two executive orders that Trump issued last year.

The FAA Reauthorization Act of 2024 calls for the Transportation Department to “undertake and ensure testing and evaluation of innovative concepts, technologies, and operations that will offer new safety benefits, including developing and retaining an advanced aviation industrial base within the United States.”

In addition, the legislation directs the FAA to take steps to integrate UAVs into the National Airspace system.

Lawmakers cheer agency restructuring

In an email statement, Senator Ted Cruz, one of the sponsors of the Reauthorization Act, hailed the impact that the FAA reorganization would have on the introduction of UAVs and AAM into America’s airspace system.

“Regarding the arrival of air taxis and commercial drones, the 2024 FAA reauthorization and this reorganization represent important steps to accelerate the safe integration of these new entrants into the nation’s skies,” the Texas Republican said.

New Jersey Representative Jeff Van Drew who had supported legislation, which ensured that the FAA William J. Hughes Technical Center remain permanently located in his home state, cheered the announcement of the reorganization.

“This is a big deal, and it is something I have been pushing for a long time,” he said. “We pushed for a stronger focus on airspace modernization and advanced aviation technology. Now the FAA is finally putting that structure in place.”

Van Drew had also opposed an earlier restructuring plan that would have resulted in a reduction in the number of FAA jobs. In their statement. Duffy and Bedford said the current restructuring effort would not result in reductions in force.

In addition to creating the Office of Advanced Aviation Technologies, the reorganization plan calls for the following FAA subdivisions:

• The Administration and Finance Office—will include the following organizations: 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 oversee strategic policy, legal, stakeholder engagement and financial assistance functions. It will also include the agency’s rulemaking and regulatory office, as authorized by the FAA Reauthorization Act of 2024;
• The Airspace Modernization Office—required by the FAA Reauthorization Act of 2024, the office will be responsible for modernizing the NAS, including planning, research and development, systems engineering, and portfolio management;
• The Air Traffic Organization—will continue its mission to provide the safest, most efficient air navigation services in the world;
• The Aviation Safety Management System (SMS) Organization—will lead an agency-wide safety management system by centralizing safety management activities previously conducted in five separate lines of business;
• The Office of Commercial Space Transportation—will continue regulating the U.S. commercial space transportation industry;
• The Security and Intelligence Organization—will continue conducting security and intelligence activities.
• The Aviation Safety Oversight and Certification Organization—will continue the safety oversight and certification activities of the former Aviation Safety Organization.