WASHINGTON — The Department of the Air Force is considering a shift in its space acquisition strategy that could replace planned military satellite purchases from multiple defense contractors with SpaceX’s Starshield satellites, according to comments made by a U.S. senator during a hearing March 27.
Sen. Kevin Cramer (R-ND) revealed during a Senate Armed Services Committee confirmation hearing that he was told the Department of the Air Force is contemplating canceling procurement of satellites for the Space Development Agency’s (SDA) Transport Layer Tranche 2 and Tranche 3 programs in favor of SpaceX’s offerings.
The potential realignment comes as the Pentagon scrutinizes its funding plans for fiscal year 2026.
“Do you think cutting opportunities like this could hurt the innovators in the industrial base?” Cramer asked Troy Meink, President Trump’s nominee to lead the Department of the Air Force, during the hearing.
The Transport Layer is a main component of the Proliferated Warfighter Space Architecture (PWSA), a network designed to provide high-speed, low-latency data transport services globally through a constellation of interconnected satellites in low Earth orbit (LEO). These satellites use optical inter-satellite links to form a mesh network that supports the SDA’s missile-tracking capabilities.
Existing contracts at risk
SDA has already awarded contracts to York Space Systems and Northrop Grumman for Tranche 2 satellites. A third contract initially awarded to Terran Orbital was rescinded following a bid protest by Viasat and is currently being recompeted. Contracts for Tranche 3 satellites have not yet been awarded.
Cramer suggested the potential shift could represent a significant blow to defense contractors who have invested in developing specialized capabilities for military space systems. Cramer did not suggest this potential change in SDA’s program was being influenced by SpaceX’s CEO Elon Musk, who is a top Trump administration adviser.
The possibility of using SpaceX’s Starshield — a militarized version of the company’s commercially successful Starlink internet satellites — as a transport layer for the PWSA raises technical questions. SDA previously indicated that SpaceX satellites would not meet requirements, noting in 2023 that SpaceX declined to bid for SDA contracts because its commercial satellites operate at 550 kilometers in low Earth orbit, below SDA’s required altitude of 1,000 kilometers.
Air Force response
Meink responded that he was not familiar with internal discussions about SDA but emphasized his career-long support for expanded competition.
He noted that throughout his career, he has advocated for expanded competition and a broader industry base, Meink said. “It ends up almost always with the best result, both from the capability and cost to the government.”
A Department of the Air Force spokesperson said in a statement March 27 that “no decisions have been made on Tranche 2 and 3 of the Transport Layer of the Proliferated Warfighter Space Architecture.”
The spokesperson added that the Department of the Air Force and U.S. Space Force are “collaborating with the Office of the Secretary of Defense to evaluate all acquisition programs in the context of FY26 President’s Budget deliberations and the Administration’s priorities.”
