America’s military strategy has long benefited from its superiority in space, but emerging developments threaten this advantage. The warfighter’s edge has been significantly enhanced by commercial space technologies, including Earth observation satellites, global communications, and satellite-based internet. These capabilities provide critical support for navigation, detection, and decision-making on the battlefield. However, the U.S. is now facing a growing challenge from both foreign adversaries and internal policy decisions.
During a recent congressional hearing, Rep. Seth Moulton raised concerns about potential funding cuts for commercial satellite imagery programs, particularly from the National Reconnaissance Office (NRO). Such cuts could undermine the viability of the U.S. commercial space sector and weaken the nation’s strategic position in the global space race. Meanwhile, China’s commercial satellite capabilities are advancing rapidly, with companies like Chang Guang Satellite Technology Co. (CGST) deploying over 100 satellites that support military operations, including intelligence-gathering and communication systems.
The implications of these developments are significant. China’s satellite technology has been reported to have supported Russian operations in Ukraine, including the imaging of critical infrastructure like nuclear power plants. This demonstrates the growing military utility of commercial space capabilities and the potential for these technologies to be weaponized. U.S. leaders are warning that the current approach—relying heavily on classified, costly satellites—may not be sustainable against the rapid innovation from authoritarian regimes.
A key issue is the underinvestment in commercial space technologies compared to the scale of their potential impact. Despite the vast data generated by commercial satellites, government agencies are not utilizing these capabilities to their full potential. This situation is further complicated by the fact that military alliances are adopting these technologies more effectively than domestic agencies. Experts argue that a more strategic and coordinated approach is needed to ensure that the United States remains competitive in the space domain.
In response, some policymakers are calling for structural reforms in how commercial space funding is managed, advocating for neutral entities that can integrate commercial capabilities across government agencies. This would allow for more efficient use of private-sector innovations while maintaining specialized government systems. The broader concern is that if the U.S. continues to underinvest in commercial space technology, it risks ceding its leadership in this critical domain to other nations, particularly China.