Space Industry Warns Proposed Budget Cut To Collision Alert System Is A Terrible Idea

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A coalition of over 450 U.S. space, satellite, and defense companies has issued a strong plea to Congress, urging lawmakers to fully fund the Office of Space Commerce (OSC) at its Fiscal Year 2025 appropriated level of $65 million in the upcoming Fiscal Year 2026 appropriations bill. The industry leaders emphasize the critical role of the OSC in fostering economic growth, ensuring national security, and maintaining U.S. technological leadership in the increasingly competitive and congested orbital environment.

In a letter dated July 7 addressed to House Committee on Appropriations Subcommittee on Commerce, Justice, and Science Chair (whew) Hal Rogers and Ranking Member Grace Meng, U.S. space industry representatives stressed the OSC's vital mission. They highlighted that the U.S. space economy—a sector driving technological advancement and strategic competitiveness—supported nearly 400,000 jobs and contributed $142.5 billion, or 0.5%, to the total U.S. GDP in 2023. The plea also highlighted how OSC's policy, regulatory, and information-sharing activities are crucial for the continued expansion of this arena.

According to the OSC, its role is vital in providing essential space traffic coordination support to U.S. satellite operators, which can be likened to the Federal Aviation Administration's air traffic control for the airline industry. As space becomes more congested, safe operation of the entire U.S. space industry couldn't be more crucial; traffic coordination can mean uninterrupted availability of space-based broadband internet and weather forecasting for Americans. Furthermore, the OSC believes that a secure operating environment is important for national security space missions, including early warning of missile attacks.

The letter warned of severe consequences if the OSC is not adequately funded. Without proper funding, U.S. commercial and government satellite operators would face heightened risks, jeopardizing critical missions, increasing operational costs, and potentially prompting U.S. companies to relocate overseas.

Moreover, the industry cautioned against reverting the space traffic coordination mission to the Department of Defense. They stressed that successive administrations, on a bipartisan basis, have recognized space traffic coordination as a global, commercial-facing function best managed by a civilian agency. Keeping this function within the Department of Commerce allows military resources to focus on core defense missions and prevents the conflation of space safety with military control.

Signatories to the letter included prominent organizations such as the Commercial Space Federation, Aerospace Industries Association, Satellite Industry Association (SIA), and the National Security Space Association (NSSA), among others.