The Commerce Department has rescinded 40% of the budget for the Office of Space Commerce, significantly impacting its initiatives. The decision, communicated to the office in late August, reduces the fiscal year 2025 funding from $65 million to $39 million. This cut could delay several projects, particularly the development of the Traffic Coordination System for Space, known as TraCSS. Bloomberg was first to report on this funding reduction.
While the exact reasons behind the rescission remain unclear, it was not included in a broader package of cuts released by the Office of Management and Budget on August 29, which mainly focused on the State Department and foreign aid programs. Both the Commerce Department and the National Oceanic and Atmospheric Administration (NOAA) have not provided comments regarding the funding changes as of September 5.
The Office of Space Commerce, which has been under NOAA’s jurisdiction, is undergoing a transition following a White House executive order issued on August 13. This order mandates the office’s relocation within the Office of the Secretary of Commerce, expected to be completed within 60 days.
The funding cut will particularly hinder the office’s collaboration with the private sector on TraCSS, a civil space traffic coordination initiative. While the office is responsible for regulating commercial remote sensing and promoting the space industry, a significant portion of its budget is allocated to TraCSS development.
During a discussion at the Small Satellite Conference on August 11, Dmitry Poisik, TraCSS program manager, stated that essential operations could continue despite budget limitations. However, he acknowledged that initiatives aimed at enhancing partnerships with industry would be constrained. “We have more than enough money to do the basic mission,” he remarked, noting that the primary impact would be on funding for commercial space situational awareness providers involved in pathfinder and pilot projects.
Concerns have also been raised about projected fiscal year 2026 budgets for the office, with the administration proposing to cancel TraCSS entirely, which would lead to further budget cuts. Fortunately, both House and Senate appropriators have restored most of the funding for the office in their respective appropriations bills, which are still awaiting passage.
Despite the recent funding rescission, work on TraCSS continues. On September 2, the office announced that Amazon’s Project Kuiper had become the latest pilot user of TraCSS, which is nearing the final testing phases before a “production release” scheduled for January 2024. Additionally, on September 5, the office issued solicitations for a pilot program aimed at improving conjunction assessment screening services, seeking both service providers and a company to oversee the quality of the data involved.
The implications of this budget cut for the Office of Space Commerce could reshape its future endeavors, particularly in the rapidly evolving commercial space sector.
