FAA Reorg Creates SMS, AAM Units, Streamlines Activities

The FAA is undergoing what it is calling a long-overdue reorganization—the largest in the agency’s history. Transportation Secretary Sean Duffy and FAA Administrator Bryan Bedford jointly announced the reorganization yesterday, saying the new structure is designed to bolster safety, innovation, and transparency, while supporting modernization.

Key to the reorganization is a new safety oversight office that will implement a single safety management system and risk management strategy for the FAA. Rather than having individual offices monitor their own safety metrics, the new office will pull together and share safety data from across the agency.

Other moves include the creation of an airspace modernization office to oversee activities surrounding the overhaul of the air traffic control (ATC) system, as well as an advanced aviation technologies office to manage the integration of drones, eVTOLs, and other advanced air mobility vehicles.

Further changes include consolidating finance, IT, and human resources functions under the administrator and making certain leadership roles permanent positions. The FAA maintained that the restructuring would not result in workforce cuts.

According to an FAA reorganization charter, the agency is now broken into nine major offices, with the responsibilities divided between the FAA administrator and deputy administrator (Chris Rocheleau).

Under the administrator is the Administration and Finance Office (finance and management, information and technology, and human resource management); Policy and Legal Office (strategic policy, legal, stakeholder engagement, and financial assistance functions, along with rulemaking and regulatory); Airspace Modernization Office (NAS modernization); Air Traffic Organization; and Aviation Safety Management System Organization (centralized SMS management).

Under the deputy administrator are the Office of Advanced Aviation Technologies; Office of Commercial Space Transportation; Security and Intelligence Organization; and Aviation Safety Oversight and Certification Organization (management of oversight and certification activities of the former Aviation Safety Organization).

The agency added that the reorganization is part of its Flight Plan 2026 strategy that focuses on three pillars: people, safety, and National Airspace System modernization.

Acknowledging that Congress has provided $12.5 billion to support ATC modernization, Duffy added, “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 at the speed of Trump—all while enhancing safety.” 

Bedford agreed: “It’s important that we have the right people in the right places to do the best work possible. 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.”

During an Aero Club of Washington, D.C., luncheon last week, Bedford noted that laying out a solo plan for 2026 is a departure from historic goal-setting in the government. “It’s usually a three-year goal-setting cycle. This is one year,” he told attendees and explained a little of the rationale behind the Flight Plan.

Beford called the plan an opportunity to change how the FAA does business. “You can point to things like rulemaking, certification, and digitization, or if you’re a pilot, you think about medical, how can we be more transparent, responsive to our customers?” Bedford said. “But for me, thinking about what will drive success, is getting the people right, getting the safety right, and then getting modernization right. How do we get the best people with the best equipment, with the best training where we need them to create the best airspace system in the world?”

As far as the safety organization, he explained that there have been 14 lines of business at the FAA. “Every line of business has a safety organization embedded in it, and they’re in their own lanes, experts at what they do, but we don’t collaborate well. We don’t share data across the silos. So we’re tearing those silos down, and we’re creating a one FAA SMS and moving really more from SMS to true risk management, risk identification, and threat assessment. I’m really, really excited about that.”

But he conceded that change will take time.

NBAA welcomed the changes. “The FAA’s new structure makes the changes required to increase operational efficiency, foster innovation, and empower the bold action needed to build an aviation system that in many ways will redefine air transportation,” said NBAA president and CEO Ed Bolen. “More than just a ‘re-org,’ this plan re-envisions what America’s aviation system is, and how it can best serve all stakeholders, now and in the decades to come.”