The Commerce Department is proposing to eliminate funding for its Space Traffic Coordination System (TraCSS), even as the program undergoes beta testing. This decision is outlined in a recently released fiscal year 2026 budget proposal for the National Oceanic and Atmospheric Administration (NOAA).
The proposal confirms earlier reports that the agency will shut down TraCSS, requesting only $10 million for the Office of Space Commerce—a significant reduction from the $65 million received in fiscal year 2024. TraCSS was intended to consolidate space situational awareness (SSA) data from various sources, providing space traffic management (STM) services to satellite operators. The program aimed to eventually assume civil STM responsibilities from the Defense Department. “Under the prior administration, DOC was unable to complete a government owned and operated public-facing database and traffic coordination system,” the document stated, referring to the Department of Commerce.
“In the convening time, private industry has proven that they have the capability and the business model to provide civil operators with SSA data and STM services using the releasable portion of the DOD catalog.” Development of TraCSS began in 2018 under Space Policy Directive 3, but funding shortfalls and congressional hesitancy delayed its progress. Significant funding wasn't secured until fiscal year 2023, enabling the commencement of beta tests at the end of fiscal year 2024. Janice Starzyk, acting director of the Office of Space Commerce, aimed for full operational capability by January 2026, a goal pursued despite budget uncertainty.
The Office of Space Commerce announced on May 27th that TraCSS had reached “program increment 1.2,” with enhanced capabilities for large satellite constellations. They confirmed plans for a “full production release” by early 2026. However, questions about its future emerged following layoffs of NOAA employees in February, including TraCSS personnel. Although some were later reinstated, concerns within the industry remained. Industry groups, such as the Commercial Space Federation (CSF) and American Institute of Aeronautics and Astronautics (AIAA), have advocated for continued funding, emphasizing the insufficient commercial market for space traffic coordination services. “If funding for the TraCSS program is cut, numerous American commercial SSA providers are likely to go out of business while thousands U.S. satellite operator’s spacecraft fleets will be placed in peril,” their letter stated.
The Commerce Department's budget justification, however, concludes that private industry can adequately provide these services. Richard DalBello, a former director of the Office of Space Commerce, criticized this conclusion as a "fundamental misunderstanding" of TraCSS's role, citing its importance in real-time data sharing, serving as an authoritative benchmark, and providing a "diplomatic lever" in shaping international space regulations.
Some SSA companies have expressed private concerns, suggesting the office is replicating older methods rather than adopting cost-saving technologies such as artificial intelligence. While acknowledging potential improvements to TraCSS, the AIAA and CSF stressed that reverting to older paradigms would hinder progress and potentially lead to service disruptions.