U.S. satellite imagery providers are sounding the alarm over proposed cuts to the National Reconnaissance Office’s (NRO) commercial imagery budget. These reductions, nearing congressional review, are seen as posing significant risks to national security and the long-term health of the domestic space industry.
Executives at a recent SpaceNews forum expressed concerns that the potential cuts are contradictory to the administration’s stated goal of fostering a more competitive commercial space sector. Scot Currie, vice president of geospatial solutions at BlackSky, noted, “The rhetoric from the Trump administration is that they want to put commercial firms in a position where they can be more competitive and bring down cost, whereas the actual actions that were taken on the budget proposal seem to be at odds with that. That has had us a little bit concerned.”
The Trump administration’s proposal involves a roughly $130 million cut, a 30% reduction from prior forecasts, to the NRO’s commercial imagery procurement budget for fiscal 2026. The plan also eliminates funding for synthetic aperture radar (SAR) imagery. While the possibility of cuts has been known for some time, satellite executives are intensifying their warnings as the opportunity for congressional intervention diminishes.
Industry leaders are lobbying Congress, highlighting the potential negative impact on innovation, security, and U.S. leadership in space-based intelligence. The Commercial Spaceflight Federation has urged lawmakers to fully restore funding for commercial imagery and provide an additional $83 million to the Space Systems Command’s Commercial Space Office.
The concerns extend beyond immediate revenue impacts. Executives emphasize the need for stable funding to facilitate long-term investments in capital-intensive systems. BlackSky’s plans to launch 12 advanced Gen-3 imaging satellites by the end of 2026 depend on contracts under the NRO’s Electro-Optical Commercial Layer (EOCL) program. Budget cuts could significantly hinder these plans. Currie explained, “The stability of the government contracts is key, because we use that to build out to purchase long lead items, like telescopes, star trackers, etc., to build out that constellation and to schedule launch windows and contract with various launch providers.”
Industry groups also warn that reduced government procurement could further erode investor confidence, already fragile in the space sector, potentially chilling private investment as the industry seeks to diversify beyond defense and intelligence contracts. Brian Pope, vice president of intelligence programs at Maxar, the largest EOCL contractor, stated, “If we’re gonna invest our dollars from an industry perspective, we want to make sure we’re putting it towards the right things.”
Chad Anderson of Space Capital highlighted the industry’s transition, noting the growth of non-governmental applications but emphasizing the continued reliance on government contracts as the foundation for scale and market position. The industry needs government contracts to build infrastructure while simultaneously attracting new commercial customers.
The intensified lobbying efforts occur amidst rising geopolitical tensions which increase the demand for high-resolution satellite imagery. Recent events, such as U.S. airstrikes on Iranian nuclear facilities, underscore the continuing need to monitor sensitive sites and activities. Commercial satellite networks provide valuable speed and persistence in such situations.
Analysts at Canaccord Genuity point out the increased difficulty for adversaries to conceal activities due to the wider array of commercial and military imaging satellites. However, they stress the critical importance of revisit rates. “The key takeaway here is: revisit rate, revisit rate, revisit rate,” they wrote. BlackSky’s Gen-3 satellites aim to improve revisit rates to 60 minutes, compared to the current 90 minutes, with enhanced resolution and infrared capabilities. Currie noted, “Our contract with NRO requires an even higher revisit rate. But now we’re going to have to see how that plays out in relation to how the budget in 2026 plays out.”