FAA equity talks raise questions about the agency's legal authority

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The Federal Aviation Administration’s pursuit of an equity stake in a private company that uses AI to manage air traffic is raising questions about whether it has clear legal authority to strike such a deal.
The Trump administration has negotiated stakes in dozens of other companies, but none through the FAA. The agency’s interest in owning part of Air Space Intelligence, first reported by Politico, is too “premature” for there to be specifics, a person familiar with the matter told Semafor.
Talks so far have been limited to a handful of internal conversations, the person added. One possible statutory underpinning for a deal: Existing law authorizes Transportation Department financial help for state or local governments to “acquire an interest” in some public transportation companies.
That argument, like other agencies’, would be a stretch. “It’s further proof that the administration doesn’t have a ‘plan’ or ‘strategy,’” said Tad DeHaven, who tracks the stakes for the Cato Institute.

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