WASHINGTON — Hundreds of U.S. companies on Tuesday urged Congress to back off a plan to kill a small federal office tasked with managing satellite traffic in space, a badly needed civilian effort initiated by President Donald Trump’s first administration but now imperiled by cuts.

The White House’s 2026 budget proposal seeks $10 million for the National Oceanic and Atmospheric Administration’s Office of Space Commerce, an 84% cut from the office’s 2025 funding that would terminate Traffic Coordination System for Space (TraCSS), a civilian system to help prevent satellite collisions and alert operators of potential crashes.

Four-hundred and fifty companies from seven different industry groups, including Elon Musk’s SpaceX and Amazon’s Kuiper satellite unit, wrote in a joint letter on Tuesday to the Senate committee overseeing NOAA that without funding TraCSS, “U.S. commercial and government satellite operators would face greater risks – putting critical missions in harm’s way, raising the cost of doing business, and potentially driving U.S. industry to relocate overseas.”

The rise of vast satellite constellations like SpaceX’s Starlink and heightened military and commercial activities in Earth’s orbit have driven up risks of collisions between the roughly 12,000 active satellites in space and thousands more pieces of uncontrollable junk, prompting efforts to create what is essentially a civil air traffic control system for space.

U.S. Needs to Retain Control of Space Traffic

Audrey Schaffer, vice president of strategy and policy at space-tracking firm Slingshot Aerospace, said the cuts would forfeit an opportunity to shape global space traffic control as the U.S. did decades ago for international air traffic control standards, while Europe and China develop their own satellite traffic systems.

“It’s really important that there be coordination amongst these different systems, so we don’t have this fragmented system,” Schaffer said. “If the U.S. doesn’t have a system that it brings to the table, I’m not really sure how the U.S. exercises any leadership in the establishment of international space traffic management.”

The Pentagon has long managed a space traffic database called Space-Track, but defense and industry officials argue that responsibility detracts from its national security mission and risks conflating an essential safety service with military interests as other countries seek improvements to global satellite coordination.

The space industry in 2020 praised Trump’s first administration for directing the NOAA office to absorb the Pentagon’s space-tracking function and improve efforts to fuse satellite position data from countries and companies. The office has since released a trial version of TraCSS currently in use by some companies ahead of a full release planned for early next year.

Trump Administration: Private Companies Are Capable

But the Trump administration in a budget document last month explained it wants to terminate TraCSS because it did not complete the system during the prior administration and that private companies “have the capability and the business model” to do space traffic coordination on their own.

The two largest space industry organizations – the Commercial Space Federation and the American Institute of Aeronautics and Astronautics – wrote in another letter protesting the termination of TraCSS to senators on Monday that “industry believes that maintaining a basic SSA service at no cost to the end user is inherently a government function.”

(Reporting by Joey Roulette in Washington; Editing by Matthew Lewis)