Space industry bigwigs have sent letters to Congressional leaders urging them not to eliminate funding for preventing space collisions, as requested in a budget proposal for FY 2026.

The problem, according to private space industry representatives, is a line in a budget request [1]document that mentions (page 300) plans to reduce funding for the Office of Space Commerce (OSC) in the next budget year, slashing its budget from $65 million to just $10 million. That $55M cut is accomplished by eliminating the Traffic Coordination System for Space (TraCSS) program, and that doesn't leave the space industry feeling very confident in the [2]state of orbital affairs .

"One of OSC's most important functions is to provide space traffic coordination support to US satellite operators, similar to the Federal Aviation Administration's role in air traffic control," stated [3]letters from space companies including SpaceX, Boeing, Blue Origin, and others.

[4]

The letters argue that safe space operations "in an increasingly congested space domain" are critical for modern services like broadband satellite internet and weather forecasting, but that's not all. "Likewise, a safe space operating environment is vital for continuity of national security space missions such as early warning of missile attacks on deployed US military forces," the letters added.

[5]

[6]

Industry trade groups sent the letters to the Democratic and Republican leadership of the House and Senate budget subcommittees for Commerce, Justice, Science, and Related Agencies, claiming to represent more than 450 US companies in the space, satellite, and defense sectors.

The letters argue for the retention of the OSC's FY 2025 budget of $65 million, as well as keeping control of space traffic coordination within the purview of the Department of Commerce, under which the OSC is nested, and not the Department of Defense, where it was previously managed.

[7]

"Successive administrations have recognized on a bipartisan basis that space traffic coordination is a global, commercial-facing function best managed by a civilian agency," the companies explained. "Keeping space traffic coordination within the Department of Commerce preserves military resources for core defense missions and prevents the conflation of space safety with military control."

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In the budget request document, the government explained the Commerce Department was unable to complete "a government owned and operated public-facing database and traffic coordination system" in a timely manner. The private sector, meanwhile, "has proven they have the capability and the business model to provide civil operators" with the necessary space tracking data.

But [12]according to the OSC, TraCSS would have been ready for operations by January 2026, raising the question of why the government would kill the program so late in the game. We've reached out to a number of people and agencies involved, but haven't heard back from anyone.

One thing's for sure - the private space industry is being extremely clear that gutting the program could force [13]yet another US industry to leave the country for saner pastures.

"Without funding for space traffic coordination, US commercial and government satellite operators would face greater risks – putting critical missions in harm's way, raising the cost of doing business, and potentially driving US industry to relocate overseas," the letter threatened. ®

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[1] https://www.noaa.gov/sites/default/files/2025-06/NOAA%20FY26%20Congressional%20Justification.pdf

[2] https://www.theregister.com/2023/08/23/space_debris_targeted_for_groundbreaking/

[3] https://commercialspace.org/news_events/csf-and-industry-partners-urge-continued-support-for-the-office-of-space-commerce/

[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2aHA3_J5fR9queGVkW8hlWwAAABM&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0

[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aHA3_J5fR9queGVkW8hlWwAAABM&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aHA3_J5fR9queGVkW8hlWwAAABM&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0

[7] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aHA3_J5fR9queGVkW8hlWwAAABM&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[8] https://www.theregister.com/2025/07/10/nasa_interim_administrator/

[9] https://www.theregister.com/2025/07/08/nasa_boss_budget_reaction/

[10] https://www.theregister.com/2025/07/09/science_funding_trump/

[11] https://www.theregister.com/2025/05/30/american_science_put_on_starvation/

[12] https://space.commerce.gov/tracss-expands-crada-efforts-with-spacex/

[13] https://www.theregister.com/2025/05/09/uk_draws_us_scientists/

[14] https://whitepapers.theregister.com/