The US Department of Transportation unveiled what agency leaders described as the largest organizational overhaul in Federal Aviation Administration history. The restructuring centralizes safety oversight, consolidates internal functions, and creates new offices to modernize air traffic control and integrate emerging aviation technologies.
US Transportation Secretary Sean Duffy and FAA Administrator Bryan Bedford announced the changes on January 27, 2026, saying the reshaped agency will be better positioned to address current safety challenges and future operational needs.
At the heart of the overhaul is a newly formed Aviation Safety Management System (SMS) organization. Backed by Congress in the 2024 FAA Reauthorization Act, the SMS organization will implement “a single safety management framework and risk management strategy” across the entire agency. Previously, safety metrics and risk oversight were spread across multiple offices, making it harder for the FAA to share safety data and respond quickly to emerging risks.
“This agency-wide system will enable safety data and insights to be shared more freely and acted on sooner,” Bedford said. “It puts permanent leaders in place who embrace innovation and are focused on deploying a brand-new air traffic control system while integrating key technologies into the National Airspace System.”
The reorganization also establishes an Airspace Modernization Office tasked with overseeing the rollout of the revamped air traffic control system, part of the FAA’s broader Flight Plan 2026 strategy. Flight Plan 2026 centers on three pillars: people, safety, and modernization of the National Airspace System.
In addition, the FAA created an Office of Advanced Aviation Technologies, charged with managing the integration of drones, electric vertical take-off and landing aircraft (eVTOLs), and other advanced air mobility vehicles into US airspace. The move reflects a shift in how the agency treats emerging aviation technologies—no longer as niche programs, but as a core part of its strategic future.
“Advanced aviation technologies—from unmanned aircraft to eVTOLs and beyond—now have a clearly defined home at the top of the FAA’s organizational chart,” said a departmental briefing. The office is expected to provide a single point of coordination for advanced tech integration across the agency.
Leaders emphasized that the reorganization will not include layoffs or personnel reductions as part of the transition. Instead, the changes aim to streamline decision-making and reduce internal duplication.
Under the new structure, several key divisions were also realigned. The FAA consolidated finance, information technology, and human resources under a single Administration and Finance Office. A Policy and Legal Office now oversees rulemaking, regulatory work, and stakeholder engagement. Traditional oversight functions such as commercial space transportation, security and intelligence, and certification remain under dedicated offices, albeit within a new reporting framework.
Officials framed the overhaul as a response to demands for faster modernization and better risk management. The FAA has faced scrutiny over safety performance in recent years, including criticisms of fragmented oversight following high-profile accidents, incidents, and near misses. While agency leaders did not specify all the internal goals of the overhaul, the unified safety management system is expected to help the FAA more consistently identify hazards and mitigate risks before they lead to accidents.
Transportation Secretary Duffy linked the internal changes to broader legislative support, including a significant funding increase for modernization efforts.
“Thanks to bipartisan support and robust funding, we can streamline the bureaucracy, encourage innovation, and deliver a new air traffic control system, all while enhancing safety,” Duffy said.