The future of space commerce is uncertain under Trump. Here’s why

The space economy is rapidly expanding, with an estimated global value of $613 billion in 2024, prompting increased regulatory attention. The Office of Space Commerce (OSC) was established by President Reagan to oversee and guide the burgeoning commercial space industry. This office, housed within NOAA, focuses on three key areas to enable robust U.S. commercial interests in outer space. Primarily, OSC licenses and monitors private companies' collection and distribution of Earth imagery from orbit, aiding in applications like agricultural land use. Secondly, it acts as a space advocate, streamlining the regulatory environment by coordinating with other U.S. agencies like the FAA, FCC, and EPA, and collaborating with international partners on space-based services. Lastly, and most significantly, OSC is tasked with managing commercial satellite traffic in near-Earth space, developing the TraCSS system to prevent collisions, although this initiative is behind schedule. President Trump's administration has sought to elevate OSC's status, proposing to make it report directly to the Secretary of Commerce, bypassing Congress and granting it greater influence. This move aims to increase OSC’s visibility and authority within the broader economy, building on an earlier, unsuccessful attempt to create a similar entity. Despite these efforts to empower OSC, the office has faced significant challenges, including staffing reductions and severe budget cuts, with an 85% proposed cut for fiscal year 2026 and a 40% rescission of its 2025 budget. These financial setbacks, some occurring despite executive orders promoting the office, threaten to diminish OSC's capabilities and potentially lead to further restructuring or even dismantling. The future of the OSC and its critical role in regulating space commerce remains uncertain amidst these budgetary and structural pressures.