Congress Seeks to Streamline Advanced Air Mobility Certification

Both chambers of the U.S. Congress have introduced legislation seeking to update and streamline the Federal Aviation Administration's (FAA) type certification process specifically for advanced air mobility (AAM) operations, including those using electric vertical takeoff and landing (eVTOL) aircraft, as part of a broader push to bring novel aircraft designs closer to commercial operation.¹

The Aviation Innovation and Global Competitiveness Act (S. 3885) – introduced by Sens. Peter Welch (D-Vt.), Ted Budd (R-N.C.), Ben Ray Luján (D-N.M.), John Curtis (R-Utah), Alex Padilla (D-Calif.), and Jerry Moran (R-Kan.) on February 12, 2026 – proposes several changes to the FAA's procedure for evaluating applications for an aircraft type certificate. Through the bill, legislators also aim to provide clarity in the type certification process by requiring the FAA to specify the circumstances under which a manufacturer must submit an "issue paper" and set forth expected time ranges for particular steps in the process. Various stakeholders and industry groups strongly endorsed the legislation.

An amended version of the bill passed out of the U.S. Senate Committee on Commerce, Science, and Transportation on July 22, with three recorded "no" votes.² The next step on the Senate side now moves to the Senate floor for consideration. The House of Representatives companion bill (H.R. 7553), championed by House Committee on Transportation and Infrastructure Chair Troy Nehls (R-Texas) and Ranking Member Andre Carson (D-Ind.), still awaits action at the committee level.

The proposed legislation is consistent with the federal government's approach of enabling AAM operations. As described in a previous Holland & Knight alert, the federal government has focused on advancing AAM operations by taking a variety of steps in anticipation of enabling a large volume of operations, as shown in last year's Advanced Air Mobility Interagency Working Group's National Strategy and the Group's Comprehensive Plan.³

Industry stakeholders' testimony before the House Committee on Transportation and Infrastructure Subcommittee on Aviation on December 3, 2025, is also consistent with the policy underlying the proposed Aviation Innovation and Global Competitiveness Act. At the hearing, Subcommittee Chair Troy Nehls stated, "advances in technology, such as increased battery density, are allowing for the development of eVTOL aircraft that have the potential to be quieter and more efficient. There's only one issue: no one has a type certificated (TC) aircraft yet."⁴ Executives from manufacturers of AAM aircraft and related components expressed concerns at the hearing about the perceived lack of identified of type certification standards for novel aircraft designs and components, as well as the apparent absence of transparency in the type certification process.

These developments all coalesce generally around the need for type certification standards for novel aircraft designs. When new aircraft concepts lack any existing, codified design criteria, the FAA must determine the most suitable means of ensuring airworthiness, as is its long-standing responsibility. Moreover, type certification standards ensure consistency in production and enable the FAA to oversee compliance with such standards in a predictable manner. The Aviation Innovation and Global Competitiveness Act aims to prompt improvements in the type certification process, even when standards for AAM aircraft or their components do not yet exist.

Airworthiness and Need for FAA Type Certificate

Certification of aircraft is a necessary component, and perhaps the most time-consuming and detailed, of enabling operation of a newly designed aircraft. In general, to provide air carrier services, aircraft must have an appropriate type certificate and airworthiness certificate. As Holland & Knight reported last year, the FAA issued a final rule in furtherance of modernizing the process and standards for obtaining airworthiness certificates for aircraft that have "special" airworthiness certificates. Such modernization will now occur by the FAA's use of performance-based standards rather than prescriptive standards that do not provide flexibility.

At approximately the same time that the FAA issued its final rule, it also issued a long-awaited Advisory Circular concerning 14 C.F.R. Section 21.17(b), which permits the selection of a combination of aircraft certification standards that lead to certification of aircraft. As stated in the previous alert, such steps provide a glimpse into the agency's mindset: It intends to move forward by accepting industry's feedback and proposed solutions and using an iterative approach by considering new standards and potentially adopting them. Though these steps, as applied to aircraft that have a special airworthiness certificate, might not immediately permit the air carrier operations that manufacturers or operators may ultimately seek to conduct, they are important opportunities for manufacturing and testing of novel types of aircraft designs.

For air carrier operations, aircraft must generally hold a standard airworthiness certificate in the transport category rather than a special airworthiness certificate.⁵ As a result, the FAA issues a certificate for the aircraft only upon composing and issuing a type certificate data sheet for the aircraft, which is a critical component of airworthiness.⁶ The process for obtaining a type certificate with a complete type certificate data sheet has long been outlined in 14 C.F.R. part 21 (Certification Procedures for Products and Articles).

Obtaining a type certificate for an aircraft is not only critical for air carrier operations, but also generally necessary for obtaining production approval. The FAA issues a production certificate, often in tandem with issuance of a type certificate, which authorizes the applicant to produce the aircraft based on its FAA-approved type design.⁷ Manufacturers are then required to make each manufactured product available to the FAA for airworthiness inspection. Upon reaching an airworthiness finding, the FAA issues a certificate of airworthiness, indicating the manufactured product conforms to its FAA-approved type design data. The manufacturer remains subject to ongoing oversight: It must maintain at its place of manufacture technical data necessary for the FAA to determine that the product complies with its type design.

Recent FAA Updates Regarding Airworthiness

The FAA has recently shown a willingness to receive and consider various means of compliance with airworthiness standards, which is an updated approach. As described in last year's multilateral National Aviation Authorities' Roadmap for Advanced Air Mobility Aircraft Type Certification, the FAA and four other civil aviation authorities signed an agreement to share means of compliance with one another.⁸ The civil aviation authorities intend such an approach to provide harmonization among civil aviation standards and increase efficiency in determinations of airworthiness for aircraft. This multilateral road map was the first in a series of actions the FAA took in 2025 to entertain novel aircraft type designs, as it was followed by the MOSAIC rule, AAM Comprehensive Plan and National Strategy, and the FAA's request for proposals to participate in the eVTOL Integration Pilot Program.

Though the recently released AAM Comprehensive Plan and Strategy does not directly address aircraft certification standards as an action step, the documents are consistent with the approach of using performance-based standards and innovative solutions for aircraft certification. The Recommendations and Action Plans anticipate using modernized tools and automation potentially for research, development, testing and demonstration, especially for aircraft or systems with automation. This anticipated modernized approach indicates that the federal government seeks to ensure the industry can scale at a pace that is more rapid than the current pace of enabling operations.

FAA Type Certification Process

FAA procedures for issuing a type certificate for a novel aircraft design generally result in a lengthy period of analysis due to the need to identify appropriate airworthiness standards and receive data showing that the design, based on such proposed standards, will not present an unacceptable level of risk. To issue type certificates for aircraft of novel designs, the FAA uses a process by which its Aircraft Certification Division composes issue papers to ensure the agency is aware of information about the aircraft. Such information consists of reliability data, specific standards or criteria, and information relevant to the agency's determination of airworthiness. Given the legal necessity of ensuring each aircraft in U.S. airspace at least has an airworthiness determination, a finding concerning airworthiness is necessary;⁹ the type certification process is a means by which the FAA makes airworthiness determinations. The protocol of using issue papers is the FAA's consistent manner for undertaking the analysis needed to issue such airworthiness determinations.

Current Issue Paper Process

FAA Order 8110.112A, Standardized Procedures for Usage of Issue Papers and Development of Equivalent Levels of Safety Memorandums (October 3, 2014), has long been the guide for FAA's "standardized usage of issue papers to document the negotiation and resolution of certification issues."¹⁰ The Aviation Innovation and Global Competitiveness Act would require the FAA to create a "stable policy … regarding subjects that the Administrator determines are commonly addressed in issue papers, special conditions, special airworthiness criteria, or findings on equivalent levels of safety."¹¹ This proposal indicates legislators desire predictability in the issue paper process with regard to determinations concerning the actual need for issue papers.

Under FAA Order 8110.112A, for unique aircraft designs for which the FAA's acceptance could be precedent-setting, the agency's Aircraft Certification division composes "issue papers" under the Order at different phases of the type certificate process. Such papers are comprehensive and generally based on an aircraft designer's input. The G-1 Issue Paper phase generally involves identifying appropriate airworthiness standards that will form the certification basis for the aircraft; it may also include findings that a particular proposed standard meets a level of safety equivalent to that of an existing standard.¹² The G-2 issue paper consists of determinations of compliance or compliance checklists for ensuring conformity with the aircraft's proposed type design, as set forth in the airworthiness standards. Lastly, the G-3 issue paper addresses environmental considerations associated with the proposed type certification of the aircraft. A designer's submission of criteria for adoption in a G-1 issue paper is the lengthy, protracted portion of the process, as it entails repeated collaboration between the designer and the FAA, as well as submission of volumes of data to support proposed reliability determinations.

Certification Standards

Certification standards are codified at 14 C.F.R. Parts 23 (small airplanes), 25 (large airplanes) and 27 (rotorcraft). As noted above, when design criteria or standards for a particular type of aircraft – such as powered-lift – do not exist, the FAA may use 14 C.F.R. Section 21.17(b) to gather and use standards from various other regulatory parts in creating the certification basis for the aircraft, which enables the FAA to make a finding of airworthiness. In determining the appropriate airworthiness criteria, the FAA's Office of Aircraft Certification uses the issue paper process.

The FAA's Advisory Circular concerning Section 21.17(b) addressed the process for submitting proposed type certification criteria and potential standards.¹³ In addition, it provides flexibility to manufacturers, as they can choose to design for either "essential performance" or "increased performance" standards; the availability of such options means manufacturers can choose to design to higher standards depending on the specific characteristics of a particular mission for the aircraft. Overall, while the process of identifying appropriate standards and establishing they are appropriate might be lengthy, the use of Section 21.17(b) as described in the recent Advisory Circular will shorten the time frame significantly when compared to use of standards in a single regulatory part, such as 14 C.F.R. part 23.

The Aviation Innovation and Global Competitiveness Act's Proposed Revisions to the Certification Process

The Aviation Innovation and Global Competitiveness Act would revise the type certification process for aircraft designed for advanced air mobility missions or operations by increasing transparency of FAA decision-making throughout the FAA's consideration and evaluation of type certification standards. It also aims to increase efficiency in the process, ensure the issue paper process is meaningful and ensure changes occur in a manner consistent with a plan available to the public. The Act adopts the same definition of "advanced air mobility" that was codified in Section 951 of the FAA Reauthorization Act of 2024, which includes "a transportation system that is comprised of urban air mobility and regional air mobility using manned or unmanned aircraft."

Publicly Available Plan

The Act would require, not later than 180 days after its enactment, publication of a Plan on the FAA website that contains several elements, including a means of improving the issue paper process for AAM operations. The Plan would need to include a stable policy, to the extent practicable, regarding "subjects that the Administrator determines are commonly addressed in issue papers, special conditions, special airworthiness criteria, or findings on equivalent levels of safety." This requirement would result in a consistent framework for subjects of issue papers and would potentially limit the issue paper process to only those subjects that are necessary for analysis, perhaps due to their novelty.

The Act would also require the Plan to include the extent to which a manufacturer may use an industry consensus standard as an acceptable "means or method of compliance." The provision clarifies that such use would be in the Administrator's sole discretion and must be consistent with the public interest in aviation safety. The choice of the Administrator and use of the term "sole discretion" indicates that other agencies and the U.S. Department of Transportation (DOT) might not be authorized to make the determination of whether use of the industry consensus standard is appropriate. In addition, the Act would require consideration of performance-based standards when promulgating requirements for type certification of aircraft, aircraft engines or propellers.

Timelines

The Aviation Innovation and Global Competitiveness Act also indicates legislators' prioritization of increasing efficiency in the type certification process. Within 270 days of enactment, the legislation would require the FAA to amend FAA Order 8110.112A and potentially other FAA documents to establish ranges of anticipated timelines for achievement of major milestones in the certification process for AAM operations. The activities for which the legislation would require timelines are:

• development of issue papers and other documents concerning the certification basis, as well as means of compliance and equivalent levels of safety, for the aircraft; this time frame would also need to include the anticipated FAA response time at each stage in the issue paper process
• amount of time between closure of issue paper that contains a special condition and publication of the respective notice of proposed special conditions and final special conditions, in the event the FAA publishes the proposed special condition¹⁴
• amount of time taken for the FAA to respond to petitions for exemption and applicants' proposals setting forth means of compliance with performance-based design standards¹⁵
• timeliness of an applicant's substantive responses to the FAA's requests for information that the FAA deems are necessary to conclude review and close out petitions or proposals

The statute would exclude from the above requirement for amendment of FAA Order 8110.112A resolution of such complex issues that the Administrator, in the Administrator's sole discretion, may identify. Notably, the Act was amended in committee on the Senate side to explicitly designate these timelines as "non-binding."

Means of Compliance

The Act would also require the FAA to consider performance-based standards when promulgating requirements applicable to type certification of aircraft, aircraft engines or propellers. The FAA would need to determine the extent to which an industry consensus standard can be used as an "acceptable means or method of compliance," subject to the Administrator's "sole discretion" and consistent with the public interest in aviation safety.¹⁶ As a result, the proposed legislation enables industry stakeholders to present solutions in the form of means of compliance with specific aircraft certification standards, which presumably will be performance-based standards.

Additional Proposed Updates

In addition to largely addressing the type certification process, the Aviation Innovation and Global Competitiveness Act would require the FAA to publish on its website delegation guidance for type certification of AAM aircraft, engines and propellers. Such updated guidance would need to include criteria for individuals who may act on behalf of the FAA and classifying compliance findings that are routine in contrast to those that are "safety-critical." The guidance must also include the extent to which this delegation authority considers how to ensure safety and foster predictable and routine type certification processes for "new and novel technologies." Such potential increases in uses of authorized representatives acting on behalf of the agency would come at a time when it has just undergone an extensive reorganization.

DOT Secretary Sean Duffy and FAA Administrator Bryan Bedford announced January 27, 2026, that the FAA would undergo the largest reorganization in the agency's history. Principal components of the reorganization include establishing a safety management systems office, in which the agency will maintain safety metrics and risk management data and information for the entire agency; an airspace modernization office, which will oversee installation of the new air traffic control system; an advanced aviation technologies office, which will handle integration of unmanned aircraft systems, eVTOL and other AAM aircraft; and consolidation of various administrative functions within the agency, such as finance, information technology and human resources.

Lastly, the Act would require the FAA to brief Congress regarding the agency's fulfillment of the timeline standards it would set forth as required by other provisions of the bill. The FAA would need to collaborate with industry in revising FAA Order 8110.112A as described in the Act.

Conclusion and Key Takeaways

In the evolving environment of AAM, the federal government appears to remain committed to ensuring it does not stymie the ideas for manufacturing of novel aircraft and operations of such aircraft. Overall, the federal government appears receptive to solutions that include and defer to industry ideas, from initial designs to testing and ensuring reliability, with regard to aircraft certification, air traffic modernization and vertiport design. Interested stakeholders should remain aware of this receptivity when planning and taking action in furtherance of these opportunities and seek counsel when cultivating relationships with the FAA, especially within the purview of agreements that enable operations.

Notes

¹ In the FAA Reauthorization Act of 2024, Congress defined "Advanced Air Mobility" and "AAM" as "a transportation system that is comprised of urban air mobility and regional air mobility using manned or unmanned aircraft." Pub. 118-63, Section 951(1), 138 Stat. 1025, 1375 (May 16, 2024).

² Sens. Maria Cantwell (D-Wash.), Andy Kim (D-N.J.) and Ed Markey (D-Mass.) each voted "no."

³ DOT, Advanced Air Mobility Interagency Working Group: The Advanced Air Mobility National Strategy: A Bold Policy Vision for 2025–2035 (Dec. 17, 2025); DOT, Advanced Air Mobility Interagency Working Group, The Advanced Air Mobility Comprehensive Plan: LIFTing AAM to Maturity in the United States (Dec. 17, 2025). "Advanced Air Mobility" refers to an air transportation system that moves people and cargo between places using new aircraft designs that are integrated into existing airspace operations and operated in local, regional, intraregional, rural and urban environments. Pub. L. 117-209, 136 Stat. 2227 (Oct. 17, 2022). The FAA Reauthorization Act of 2024 later stated, for purposes of Title IX, Subtitle B of the Act, "[t]he terms "advanced air mobility" and "AAM" mean a transportation system that is comprised of urban air mobility and regional air mobility using manned or unmanned aircraft." Pub. L. 118-63 at Section 951(1), 138 Stat. 1025, 1375 (May 16, 2024).

⁴ Transportation & Infrastructure Committee, America Builds: The State of the Advanced Air Mobility (AAM) Industry | Transportation and Infrastructure Committee (Dec. 3, 2025).

⁵ Types and categories of aircraft certificates are listed at 14 C.F.R. Section 21.175.

⁶ An aircraft is considered airworthy if it complies with its type design and is in a condition for safe operation. Operating an aircraft in the absence of an FAA-approved type design is a violation of 14 C.F.R. Section 91.7.

⁷ A person may also apply to receive a production certificate if he or she holds either the rights to the benefits of that type certificate under a licensing agreement or supplemental type certificate.

⁸ A means of compliance is a manner in which a manufacturer or designer can establish the product it has made or designed meets a particular standard. When a performance-based standard exists as an airworthiness criterion, the civil aviation authority may consider more than one means of compliance. Examples of performance-based regulations for type certificate standards or airworthiness criteria for certain FAA regulations codified at 14 C.F.R. Part 23, as well as in the agency's new regulations at 14 C.F.R. Part 122 currently exist.

⁹ 49 U.S.C. Section 44704.

¹⁰ FAA Order 8110.112A: Standardized Procedures for Usage of Issue Papers and Development of Equivalent Levels of Safety Memorandums.

¹¹ S. 3885, the Aviation Innovation and Global Competitiveness Act, at Section 2(a)(2).

¹² FAA Order 8110.112A: Standardized Procedures for Usage of Issue Papers and Development of Equivalent Levels of Safety Memorandums at 2-3 (stating that an issue paper is the means for memorializing "the evolution and conclusion of the request for an [equivalent level of safety (ELOS)] finding. ELOS findings are made when literal compliance with an airworthiness standard cannot be shown and compensating factors exist that can be shown to provide an ELOS."

¹³ FAA Advisory Circular 21.17-4 (July 18, 2025).

¹⁴ Special conditions, as described at 14 C.F.R. SectionSection 11.19 and 21.16, are tailored airworthiness standards issued when an aircraft, engine or propeller features design characteristics not covered by existing standards.

¹⁵ The FAA's process for reviewing and responding to petitions for exemption from regulatory provisions is codified at 14 C.F.R. part 11.

¹⁶ S. 3885, Aviation Innovation and Global Competitiveness Act at Section 2(a)(2).

Information contained in this alert is for the general education and knowledge of our readers. It is not designed to be, and should not be used as, the sole source of information when analyzing and resolving a legal problem, and it should not be substituted for legal advice, which relies on a specific factual analysis. Moreover, the laws of each jurisdiction are different and are constantly changing. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. If you have specific questions regarding a particular fact situation, we urge you to consult the authors of this publication, your Holland & Knight representative or other competent legal counsel.