The Modern Skies Act authorizes $10 billion in fiscal year 2027 funding for a pilot program supporting the modernization and reconstruction of aging terminal buildings at up to three medium-hub airports that have not undergone major renovations since 1990. Additionally, the bill appropriates $9.1 billion for air traffic control improvements, including $7.2 billion for a common automation platform and controller workstation, $2 billion for cloud computing infrastructure, and other modernization efforts. The legislation also provides $10 billion for discretionary airport grants, with $5 billion specifically dedicated to terminal development projects at eligible airports nationwide, using a higher federal cost-share for smaller airports. The Secretary of Transportation will select pilot program participants and must report to Congress quarterly on expenditures and program status. Airports participating in the pilot program can use funds for terminal development, demolition and construction, utility upgrades, cargo facilities, and ground support equipment replacement, with the federal government covering up to 90 percent of costs.