The U.S. Department of Commerce has decided to rescind 40% of the funding for the Office of Space Commerce, significantly impacting its operations and initiatives. This decision affects approximately $26 million of the $65 million budget appropriated for fiscal year 2025. Industry sources reported that the office was notified of this funding reduction in late August, raising concerns about the future of various projects.
The reasons behind this financial cut remain unclear. It was not included in the August 29 package of rescissions released by the Office of Management and Budget, which primarily targeted State Department and foreign aid programs. Spokespersons for both the Commerce Department and the National Oceanic and Atmospheric Administration (NOAA) did not provide comments on the matter as of September 5, 2023.
Impact on Initiatives and TraCSS Development
The Office of Space Commerce, previously under NOAA, is undergoing a transition following a White House executive order issued on August 13. This order mandates the office to be relocated within the Office of the Secretary of Commerce within a 60-day timeframe. The budget reduction will particularly affect the office’s collaboration with industry partners on the Traffic Coordination System for Space (TraCSS), which is intended to enhance civil space traffic management.
During a discussion at the Small Satellite Conference on August 11, Dmitry Poisik, TraCSS program manager, remarked that essential operations could continue despite the budget cuts. He emphasized that while basic missions would remain funded, initiatives designed to engage with the commercial sector would likely face significant setbacks. “We have more than enough money to do the basic mission,” Poisik stated, noting that the cuts would primarily impact funding for commercial space situational awareness providers involved in pilot projects.
The administration had previously proposed cancelling TraCSS in future budgets, which would have led to further reductions. However, both House and Senate appropriators have restored much of the funding in their respective appropriations bills, which are yet to be finalized.
Ongoing Projects and Future Steps
Despite the recent budget rescission, work on TraCSS continues. The Office of Space Commerce announced on September 2 that Amazon’s Project Kuiper has become the latest pilot user of the TraCSS system, which is now in the final testing stages ahead of a scheduled production release in January 2024.
Furthermore, on September 5, the office issued solicitations for a pilot program aimed at improving conjunction assessment screening services. This initiative seeks both service providers and a company to ensure the quality of the data produced.
As the Office of Space Commerce navigates these financial challenges, its ability to fulfill its mandate of regulating commercial remote sensing and promoting the space industry will be closely monitored by stakeholders within the sector. The ongoing developments and appropriations decisions will be crucial in determining the future trajectory of the office and its initiatives.