Sponsor
Adam Smith
Representative · D-WA
Representative · D-WA
The bill strengthens FAA enforcement and requires labor/safety representation at large aircraft makers to improve safety and worker voice, but it risks disrupting certification timelines, raising corporate costs, and creating a sharp regulatory cliff for firms around the $15 billion revenue threshold.
Taxpayers and the flying public: the FAA will revoke delegation authority from entities that fail to meet standards within 90 days, increasing regulatory enforcement, accountability, and likely improving safety oversight.
Workers at large aircraft manufacturers and downstream users: manufacturers with large revenue must include labor and safety experts on their boards, increasing worker input and safety oversight in design and manufacturing decisions.
Airlines, manufacturers, workers, and travelers: large ODA holders could quickly lose delegation authority, disrupting certification processes and delaying aircraft approvals and deliveries.
Small and mid-sized firms and taxpayers: the bright-line $15 billion revenue threshold creates a regulatory cliff that treats similarly situated firms differently and may encourage restructuring or gaming of revenue reporting.
Aircraft manufacturers and consumers: companies face additional governance costs to recruit and retain required board members, which could raise operating costs and ultimately increase prices or divert corporate resources.
Based on analysis of 2 sections of legislative text.
Tightens who may hold FAA ODA delegations and requires very large ODA-holder boards to include labor reps and aerospace safety experts, with a 90-day rescission rule for noncompliance.
Official title: To amend title 49 of the United States Code, to revise the qualifications for organization designation authorization holders, and for other purposes.
Introduced August 10, 2026 by Adam Smith · Last progress August 10, 2026
Redefines who may hold an FAA organizational designation authorization (ODA) and requires the FAA to revoke delegations from entities that do not meet the new rules. For very large companies (at least $15 billion in annual revenue), boards must annually certify inclusion of two labor-organization representatives and two proven aerospace safety experts; the FAA must rescind delegations within 90 days for noncompliance. The change narrows eligibility and adds corporate governance and safety-staffing requirements intended to increase worker representation and safety expertise among organizations that exercise delegated FAA authority over aircraft certification.