WASHINGTON – The Department of the Air Force is evaluating a shift in its satellite procurement strategy, potentially opting for SpaceX’s Starshield satellites to enhance its low Earth orbit military constellation.
The proposed 2026 budget by the Trump administration suggests a pause in funding for the Proliferated Warfighter Space Architecture (PWSA) satellite program. This move could affect the acquisition of up to 140 satellites for Transport Layer Tranche 3, initially scheduled for 2026, with deployment planned for 2028.
Immediate Impact
During a June 26 congressional hearing, Chief of Space Operations Gen. Chance Saltzman confirmed the potential shift. He informed the Senate Appropriations Committee’s defense subcommittee about the ongoing analysis of alternatives to determine the best path forward.
“Now we have to look at what are the other avenues to deliver, potentially, a commercial, proliferated low Earth orbit constellation,” Saltzman stated.
The PWSA aims to establish a robust network of satellites for secure communication and missile tracking. It has been structured to encourage competition through regular procurements, awarding different tranches to various contractors.
Starshield Alternative
The consideration of SpaceX’s Starshield program, a militarized adaptation of Starlink satellites, surfaced in March. The Pentagon is exploring the possibility of replacing Tranche 3 satellites with a “Milnet” network of 480 Starshield satellites, operated by SpaceX for the U.S. military.
480 Starshield satellites could form a “Milnet” network for the U.S. military.
Unlike the PWSA satellites, Milnet would be funded directly by the Space Force and managed under a National Reconnaissance Office contract.
Industry Response
The potential shift has sparked concerns about diminishing competition in the defense space sector. Sen. Chris Coons (D-Del.) raised questions during the June 26 hearing, emphasizing the importance of maintaining a competitive and open architecture.
“No competition, no open architecture, no leveraging a dynamic space ecosystem. This is a massive and important contract,” Coons remarked.
Coons’ concerns align with the Pentagon’s broader efforts to foster competition and avoid dependency on single vendors.
By the Numbers
The Space Development Agency’s budget for 2026 is approximately $5 billion.
This budget underpins the PWSA, a cornerstone of the Pentagon’s strategy for space superiority through a resilient satellite network.
What Comes Next
The potential cancellation of Transport Layer Tranche 3 could significantly impact satellite manufacturers and their supply chains. These companies have invested heavily in anticipation of regular competitive opportunities provided by the PWSA.
Industry sources suggest that combining the Milnet network with the PWSA could streamline operations but might also eliminate competitive advantages that drive innovation and cost-effectiveness.
The decision on whether to proceed with Milnet for data transport remains pending, as stated by Air Force Secretary Troy Meink.
The timing of this decision is crucial as it could redefine the future landscape of military satellite procurement and competition in the defense space sector.
