A recent executive order has fundamentally altered a longstanding U.S. policy of providing free satellite tracking and collision-avoidance data to the world. The change, detailed in a December 18, 2025, order, removes the mandate for these critical space safety services to be offered “free of direct user fees,” signaling a major shift in how the nation manages an increasingly crowded orbital environment.
This policy adjustment paves the way for the U.S. government to charge commercial satellite operators for data that was previously a public good. The move comes as the number of active satellites has surged, placing unprecedented strain on the systems designed to prevent catastrophic in-orbit collisions.
Key Takeaways
- An executive order signed on December 18, 2025, removes the requirement for the U.S. to provide free space situational awareness data.
- The policy change allows the government to introduce user fees for satellite tracking and traffic management services.
- The number of active satellites has grown from about 1,000 in 2009 to nearly 14,000 today, with projections reaching 100,000 by 2030.
- The government’s civil space traffic system, TraCSS, is now operational, but its long-term funding model is under debate.
A Policy Shift for a Crowded Sky
For more than a decade, the United States has served as the unofficial air traffic controller for space. Since a major satellite collision in 2009 involving an Iridium communications satellite and a defunct Russian Cosmos satellite, the U.S. Department of Defense has provided space situational awareness (SSA) data to operators worldwide without charge.
The original policy was based on the assumption that offering free services would encourage global adoption, enhancing safety for all and solidifying U.S. leadership in space. However, the orbital landscape has changed dramatically.
Explosive Growth in Orbit
The scale of activity in Earth's orbit has expanded exponentially. The number of active satellites has increased by 1,300% since 2009. Daily collision warnings, known as conjunction data messages, have skyrocketed from a few hundred to over 600,000.
This rapid growth, driven by commercial satellite constellations, has made the previous model of free, taxpayer-funded services increasingly unsustainable. The new executive order acknowledges this reality, stating that SSA data should be available for “commercial and other relevant use,” a subtle but significant change that unlocks new funding possibilities.
The Future of TraCSS
At the center of this debate is the Traffic Coordination System for Space (TraCSS), a civil platform managed by the Department of Commerce. Designed to be the modern successor to the military-run system, TraCSS has recently become operational after a period of beta testing.
Despite its launch, the system's future has been uncertain. The administration’s Fiscal Year 2026 budget proposal suggested defunding TraCSS and shifting the responsibility for space safety entirely to the private sector. The argument was that U.S. taxpayers should not subsidize a booming commercial industry.
What is Space Situational Awareness?
Space Situational Awareness (SSA) involves tracking objects in orbit and predicting their movements. This includes active satellites, defunct satellites, and debris. This data is essential for Space Traffic Coordination (STC), the process of providing warnings and guidance to satellite operators to help them avoid collisions.
However, many policy experts argue that completely dismantling a national system like TraCSS would be a strategic mistake. It serves as a vital tool for coordinating with other nations, such as China and the European Union, which are developing their own sovereign space traffic systems. A fragmented U.S. approach could cede international leadership and create confusion for operators.
The prevailing view is that the government should retain a central role in space traffic coordination, but that industry should contribute to its cost.
A New Funding Model for Orbital Safety
The new policy opens the door for a cost-sharing model similar to what exists in aviation. The U.S. air traffic control system is largely funded by taxes and fees paid by airlines and passengers, not solely by taxpayers. A similar structure is now being proposed for space.
Several models are under consideration:
- Per-Satellite Annual Fee: A modest annual fee per operational satellite could generate significant revenue. For example, a fee of just $1,000 per satellite could fund a substantial portion of TraCSS's annual budget.
- Launch-Based Fees: Congress recently granted the Federal Aviation Administration (FAA) authority to charge fees based on payload mass to help manage airspace congestion from launches. A portion of this revenue could be allocated to on-orbit traffic management.
- Licensing Fees: Fees could be integrated into the Department of Commerce's mission authorization process for new satellite operations, with costs varying based on the complexity of the mission.
Proponents argue that satellite operators have raised billions in capital and that a reasonable fee for ensuring the safety of their multi-million dollar assets is a responsible business cost.
Addressing Industry Concerns
The introduction of new fees has raised concerns within the space industry. One primary worry is that monetary requirements could place an undue burden on U.S. companies, potentially driving them to register their satellites in other countries that offer free services.
To mitigate this risk, policymakers suggest a phased approach. Continued government funding could help keep fees low initially. Furthermore, the U.S. could ensure TraCSS remains the world's premier space traffic system by integrating cutting-edge technology from private U.S. SSA companies.
"Stable, long-term funding is needed to bring together disparate proprietary space situational awareness capabilities into a fully integrated, continuously operating world-class space traffic coordination system — funding that need not come exclusively from taxpayer dollars," stated Audrey M. Schaffer, Senior Vice President at Slingshot Aerospace and a former government space policy official.
Another potential measure involves using government contracts as an incentive. Eligibility for lucrative U.S. government contracts could be made contingent on companies being licensed in the United States and contributing to the national system.
As humanity’s reliance on space-based infrastructure grows, ensuring the long-term safety and sustainability of the orbital environment is paramount. This policy shift marks a pivotal moment, moving toward a model where the commercial beneficiaries of space share the responsibility for its stewardship.