The U.S. Commerce Department has rescinded 40% of the funding for the Office of Space Commerce, significantly impacting its operations. This decision affects approximately $26 million of the $65 million allocated for the fiscal year 2025, placing numerous initiatives on hold. The announcement was first reported by Bloomberg and has raised questions about the rationale behind the cuts and whether they originated from the department itself or higher-level directives.
The rescission was not part of a broader set of funding cuts released by the Office of Management and Budget on August 29, 2023, which primarily targeted State Department and foreign aid programs. Queries directed at representatives from both the Commerce Department and the National Oceanic and Atmospheric Administration (NOAA) regarding the details of the rescission went unanswered as of September 5, 2023.
Impact on Space Commerce Initiatives
Historically, the Office of Space Commerce, which has been integrated within NOAA, is now transitioning to the Office of the Secretary of Commerce following a White House executive order on commercial space issued on August 13, 2023. The funding cuts are expected to have a particularly adverse effect on the office’s collaboration with industry partners on the Traffic Coordination System for Space (TraCSS), a critical civil space traffic coordination framework.
During a discussion at the Small Satellite Conference on August 11, 2023, Dmitry Poisik, the TraCSS program manager, indicated that while essential operations could continue under the reduced budget, initiatives aimed at working with industry stakeholders would suffer. “We have more than enough money to do the basic mission,” he stated, noting that the reductions would primarily hinder funding for commercial space situational awareness providers involved in pilot projects.
Concerns have also been raised regarding the projected budget for fiscal year 2026, where the administration proposed to eliminate TraCSS entirely, severely cutting the office’s overall budget. Fortunately, both House and Senate appropriators have taken steps to restore much of the funding in their respective appropriations bills, which remain under consideration.
Continuing Developments and Future Plans
Despite the challenges posed by the rescission, work on TraCSS continues. On September 2, 2023, the office announced that Amazon’s Project Kuiper has become the latest pilot user of the system, which is nearing its final testing phase ahead of a planned “production release” scheduled for January. Furthermore, on September 5, 2023, the office issued solicitations for a pilot program aimed at enhancing conjunction assessment screening services, seeking both service providers and a company to ensure data quality.
The ongoing efforts reflect the office’s commitment to advancing its mission, despite the financial constraints imposed by recent budgetary decisions. The developments underscore the importance of federal support for space commerce initiatives and the need for effective coordination to address the growing complexities of space traffic management.
