Space industry warns of satellite collision risks amid US funding cuts

US space safety faces jeopardy as funding for crucial satellite collision program may plummet by 84%.

: A potential budget reduction from the White House may see the Office of Space Commerce's funding decrease from $65 million to $10 million, endangering the Traffic Coordination System for Space, crucial for managing satellite collision risks. The industry, including over 450 companies such as SpaceX and Blue Origin, warns this could increase costs, risk collisions, and drive businesses overseas. As satellite numbers rapidly increase, collision-avoidance maneuvers have doubled, raising the urgency for a reliable management system. The administration's confidence in private sectors filling the gap meets skepticism, noting no current entity can assume this responsibility effectively.

The US space industry is sounding the alarm over a proposed 84% cut to the funding of the Office of Space Commerce, which oversees a key satellite collision prevention program known as the Traffic Coordination System for Space (TraCSS). Current plans under the White House's 2026 budget propose reducing the office's budget from $65 million to $10 million, potentially crippling efforts to manage an increasingly crowded low Earth orbit, where companies like SpaceX and Amazon are rapidly increasing satellite numbers.

Industry leaders, including seven major trade associations representing more than 450 companies such as SpaceX and Blue Origin, are voicing their opposition. They argue that the cuts would not only increase operational risks and costs but could also result in American space businesses relocating to areas with better-managed space traffic systems. SpaceX, known for its Starlink project with over 7,000 satellites launched, exemplifies the growing concern as they experience a doubling in collision-avoidance maneuvers over the past six months.

The TraCSS system, which is currently in the beta phase with several satellite operators, plays a critical role in providing space situational awareness by issuing collision alerts, comparable to how the Federal Aviation Administration manages air traffic. Industry advocates emphasize the strategic importance of maintaining this system to ensure the US continues to lead in setting global space safety standards. Without it, there is a risk of leaving a dangerous gap in coordination capabilities.

Amid these concerns, the administration defends its proposal by pointing to private companies' capabilities in delivering similar services. However, representatives from the space industry stress that no single company or coalition has yet been identified to fully take over the responsibilities of TraCSS, nor is there a clear funding model to sustain such a transition. The complexity of managing an increasingly congested orbit necessitates continued government oversight.

The potential funding cuts are occurring at a particularly challenging time for space safety, as Hugh Lewis, professor at the University of Southampton, reports a sharp rise in collision-avoidance maneuvers. This emphasizes the need for robust management systems, given the forecasted increase in orbital traffic with upcoming mega-constellations not only from US companies but also from competitors in China and other nations.

Sources: TechSpot, Financial Times