The Commerce Department has taken the step of rescinding 40% of the current fiscal year's funding allocated to the Office of Space Commerce. Industry sources revealed that the office received notification in late August about the budget reduction, impacting numerous planned initiatives. This $26 million cut from the $65 million 2025 budget was initially reported by Bloomberg. The rationale behind this rescission remains undisclosed, with uncertainty surrounding whether it originated within the department or from the White House. Notably, this action wasn't included in the August 29th rescission package released by the Office of Management and Budget, which focused on State Department and foreign aid programs. Inquiries directed to the Commerce Department and the National Oceanic and Atmospheric Administration (NOAA) on September 5th regarding this matter went unanswered.
The Office of Space Commerce, previously under NOAA, was recently designated to be transferred to the Office of the Secretary of Commerce within 60 days, as per a White House executive order issued August 13th. Sources indicate that this funding reduction will significantly hinder the office's collaboration with the industry on the Traffic Coordination System for Space (TraCSS), a civil space traffic management system. While the office oversees commercial remote sensing regulation and space industry promotion, a substantial portion of its budget is dedicated to TraCSS development.
During a Small Satellite Conference side meeting on August 11th, Dmitry Poisik, TraCSS program manager, stated that core TraCSS operations could proceed despite budgetary constraints, although industry partnerships would be affected. "We have more than enough money to do the basic mission," he noted, explaining that cuts would primarily impact funding for commercial space situational awareness providers involved in pathfinder and pilot projects. At that point, the concern centered on projected fiscal year 2026 budgets, as the administration had proposed canceling TraCSS, significantly cutting the office's budget. However, House and Senate appropriators have since restored much of that funding in their respective, still pending, appropriations bills.
Despite the budget reduction, work on TraCSS continues. On September 2nd, the office announced Amazon's Project Kuiper as the latest pilot user of TraCSS, as the system enters its final testing phase before a January "production release." Furthermore, on September 5th, the office issued solicitations for a pilot program aimed at enhancing conjunction assessment screening services, seeking both service providers and a company to oversee data quality.