Industry leaders, including prominent companies like SpaceX, Boeing, and Blue Origin, are intensifying their efforts to convince Congress to retain the critical TraCSS program, which manages space traffic and ensures satellite safety. These firms are warning that if the proposed budget cuts take effect, the United States could lose its ability to control orbital traffic, potentially leading to an increased reliance on foreign operators. The proposed fiscal year 2026 budget would slash the Office of Space Commerce (OSC)’s funding to only $10 million, a drastic reduction from the current $65 million level, with the bulk of the cut targeting the TraCSS initiative.
TheOSC plays a pivotal role in providing space traffic coordination, much like the Federal Aviation Administration does for air traffic. The industry advocates assert that maintaining this function is not only crucial for commercial applications such as broadband internet and weather forecasting but also for national security. They highlight that a secure space environment is essential for missile warning systems, which are vital for protecting U.S. military assets. The industry groups are also advocating for the continued management of space traffic coordination under the Department of Commerce rather than its transfer to the Department of Defense, emphasizing the need for a civilian agency to oversee these operations.
In the government’s budget proposal, the Commerce Department was unable to complete a government-operated public-facing database and traffic coordination system on time, leading to the decision to allow private sector involvement. While private companies have demonstrated the capability and business model needed to provide civil satellite operators with tracking data, theOSC stated that TraCSS would have been operational by January 2026, raising questions as to why the program was terminated so late in the process. The industry’s warnings and appeals underscore the growing importance of space traffic management as the number of satellites in orbit continues to rise, creating a more complex and congested space environment.