REPS LIEU AND BACON LEAD LETTER CALLING FOR FULL FUNDING OF THE OFFICE OF SPACE COMMERCE
WASHINGTON – Today, Congressman Ted W. Lieu (D-Los Angeles County) and Congressman Don Bacon (R-NE) led a bipartisan letter to Office of Management and Budget (OMB) Director Russell Vought urging him to enact full funding for the Office of Space Commerce (OSC). Recent reporting indicates that OMB notified OSC that it was only entitled to an annual budget of $37 million, which representants a 40 percent cut from its $65 million Congressionally authorized budget. The Members argue that the cut could impact space traffic coordination and jeopardize critical defense missions and commercial space operations. In addition to Reps. Lieu and Bacon, this letter was signed by Representatives Nanette Barragán (D-CA), Glenn Ivey (D-MD), Salud Carbajal (D-CA), Valerie Foushee (D-NC) and Chrissy Houlahan (D-PA).
Dear Director Vought:
We write to express our deep concern regarding reported cuts to the Office of Space Commerce’s (OSC) budget. It is essential that the United States maintains its world-leading commercial space industry – and a thriving, well-resourced OSC is critical to that aim.
Recent reporting indicates that the Office of Management and Budget notified OSC it was only entitled to an annual budget of $37 million, a 40 percent cut from its $65 million Congressionally authorized budget based on the Fiscal Year 2024 enacted level and extended by the March 14 Continuing Resolution. The Administration’s cut is clearly below what both House and Senate appropriators have called for in Fiscal Year 2026. The risk of reduced funding for OSC recently compelled leading commercial and defense space associations to request $65 million in FY26 funding and warn that inadequate funding for space traffic coordination – a key responsibility of OSC – risks “putting critical missions in harm’s way, raising the cost of doing business, and potentially driving U.S. industry to relocate overseas.”
Among several important responsibilities, OSC is developing the Traffic Coordination System for Space (TraCSS), which will provide basic space situational awareness to civil and private space entities, supporting space traffic coordination and minimizing the risk of collisions. OSC’s efforts to ensure a safe, well-coordinated space environment will protect space-based services such as GPS, broadband, and resource management, among other important functions. Reduced funding risks degrading OSC’s TraCSS efforts, which would lead to greater uncertainty and a more dangerous orbital environment.
For years, OSC has been an essential partner to the U.S. space industry, a key pillar of the American innovation economy. According to the Bureau of Economic Analysis, in 2023, the space economy accounted for $142.5 billion of total U.S. GDP in 2023, created $240.9 billion in gross output, and supported 373,000 private sector jobs. While the global space economy has continued to grow, the U.S. has been the clear driver of that growth: in 2024, global satellite manufacturing revenues grew to $20 billion, and American firms earned nearly 70 percent of that market share. But at the same time, our competition is increasing as China and other global competitors ramp up investment in their own commercial space industries.
We must ensure our government agencies are equipped to continue partnering with our space industry. To that end, we request the Administration maintain OSC’s previously enacted funding level of $65 million.
Thank you for your prompt attention to this important issue. We look forward to receiving your response.
READ THE FULL TEXT OF THE LETTER HERE
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