I can't find information about how the disks are used specifically, how often they are read, written, what data they are used for, if they can be replaced by floppy emulators, etc.
12 billion for a new system that might not actually be an improvement is a lot of money.
Floppies aren't a bad technology, but they do have limits.
I doubt that SD cards will last that long.
I never had a bad sector on 5.25-inch Double-sided, Double-Density (360K) diskettes, but I did all the time with 3.5-inch HD ones (1.44MB). I'm seeing some references to 8-inch and some to 3.5-inch disks used in the FAA, but I'm not sure what source has reliable information about that.
The weather records have to be written to the floppy from an online device at some point in the pipeline.
The workflow has likely been compromised at some time, but due to lack of data integrity checks, it was never detected.
If we give them more money, this is sure to improve! Monopolies and all ...
They could've replaced floppies multiple times, with all the certifications and hardware replacements and new procedures and regulations, and we'd still be using (a different, but still) "obsolete" medium for this now.
But the cost of switching -- mainly thoroughly certifying the replacement system, retraining, and the risks of an error happening during one of those processes causing a catastrophe -- that's real.
There's no point in upgrading the storage mechanisms of arbitrary systems, or completely redoing the whole system from scratch on new hardware which would be the case here, unless it yields measurable improvements in fitness for purpose to balance against the switching costs.