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Banned
I'd say there are two options:
a) try something like Shattered Soldier, but with the enhancements of today's technology.
b) make a 3D-Reboot, but keep the bullet-hell arcade-style gameplay. Something like Vanquish perhaps.
c) Make it 2D, make it a Rogue Lite and keep the classic gameplay. Rogue Lites need upgrades and character progression, those could come in form of unlocking new weapons... these will then spawn in the levels as usual... you could even make it part of the story/lore
the Story could easily adapt this genre. every time you lose, you don't actually die, you will go down and be evacuated by Helicopter or rescue squad in indoors levels. Your mission is it to infiltrate... say 4 enemy bases these will have different themes and the level structures will be randomized each try.
you can find hidden routes which will have "secret enemy weapon tech" you can find, and if you find these your team will give you the ability to use enemy weapons... these will be all around the levels in the same way they always were in the old games

another concept could be to make your army stronger or get new recruits you find on the battlefield. They made the Probotectors canon in Contra 4, so you might find a damaged or deactivated Probotector in the levels, you bring them back to base, repair them and now you can use them as your character. each of these characters could have different stats, so Probotectors might be able to withstand more hits... Bill or Lance could be your first character and at first, without upgrades they will go down in 1 hit like in the original games, but new characters and upgrades for the starter characters will improve on this over time.
and maybe everyone but Bill and Lance have permadeath... so while Bill and Lance will always just go down and be evacuated, your additional characters will not... but they could be super strong or have abilities that are extremely effective...
an alternative could be not permadeath, but maybe they will not be rescued but instead get captures by the enemy and you have to get them back if you want to use them again.
so yeah, this is just me spitballing, but I really think a Rogue Like Contra would work in modern times, even if the base gameplay is very classic (8 way directional shooting, 2D graphics, very simple base gameplay Jump + Shoot + Dodge and balls to the wall hard at the start)
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