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Congressional Haggling Jeopardizes the US Space Force FY 2025 Budget

The US Space Force, if judged by inflation-adjusted funding in the fiscal year (FY) 2024 and 2025 budgets, is showing signs of decline. The Biden administration’s FY 2025 request of $29.6 billion, makes up about 3.5 percent of the Department of Defense’s total budget request. Oddly, the FY 2025 request is the first in which the amount fell from the prior year’s request. By mid-June 2024, the House Appropriations Committee pared back the Space Force budget request by asking for an additional $900 million cut.

The FY 2025 budget focuses on simpler satellite networks. Notable decreases occur in launch and classified activities, while increases are found in position, navigation, and timing. The Space Force continues moving towards more distributed, resilient, and cost-effective space capabilities, including GPS satellites and narrowband communications. The intention signaled for space operations is to enhance the Space Force’s ability to adapt and respond to emerging threats. By prioritizing the development of distributed and proliferated satellite networks to ensure resilient space operations, the Space Force places a continued focus on low Earth orbit (LEO). This aligns with defense goals of redundancy and rapid deployment, enhancing space “competitive endurance,” a strategy announced in early 2023 by Chief of Space Operations General B. Chance Saltzman.”

In General (Ret.) John Raymond’s often quoted words, the Department of Defense (DoD) and Space Force need to “exploit what we have, buy what we can, build what we must.” The DoD will increase the integration of commercial satellite services to reduce costs and accelerate deployment. The belief behind this policy is that to strengthen partnerships with commercial satellite providers is to capitalize on existing technologies and infrastructure, which is largely preferable to government doing it by itself. While it is a politically and operationally challenging process, the budget sequence necessitates more flexible and adaptive budget planning processes within the Space Force and other related agencies. By adopting these practices, the Space Force might better navigate budget constraints and funding adjustment, while advancing its strategic goals in space defense.

Regarding proliferation of smaller commercial assets for the sake of resilience in space, and within the currently prevalent DoD cognitive framework for the Space Force, the link between resilience and deterrence was further validated in April 2023 by John F. Plumb, former Assistant Secretary of Defense for Space Policy. In remarks at the Space Foundation’s 38th Space Symposium in Colorado Springs, Plumb said, “We will do that first and foremost by investing in resilience. We must expect to take punches in space in a near-peer conflict. A resilient architecture means we will be prepared to absorb those blows. With sufficient resilience, we hope to deter an adversary from attacking in the first place, because the value of any such attack will be greatly diminished.”

However, in space as in any other domains, resilience does not qualify as deterrence. Before events occur on the battlefield, deterrence is first and foremost built not merely based on actual capabilities, but on the ability to clearly communicate to the adversaries what such capabilities will do to them, if used. But deterrence requires a third factor, which is credibility. And the credibility of passive defensive posturing is where the real problems start.

To prevail over adversaries such as Russia and China, the West requires a genuine understanding of the adversary’s own decision-making process. If the West fails to understand that adversaries fundamentally value space as an offensive domain, the West will fail to protect its space assets—unless the Space Forces build a credible offensive counterforce capability. For active defense of critical Western space and terrestrial infrastructures to be sufficient to ensure credible deterrence, the Space Force must view space systems as a critical infrastructure and not merely a support desk for terrestrial operations.

The Senate Armed Services Committee (SASC) on June 14, 2024, cleared its version of the FY 2025 National Defense Authorization Act (NDAA). The bill was then headed to the Senate floor. The legislation, which is yet to be released in full, includes compromise language on a long-standing dispute over the transfer of Air National Guard space units to the active-duty Space Force. That does not mean the political process ends there. In the meantime, the House passed its own version of the NDAA, which includes several social policy amendments, that eliminates paid leave for servicemembers to cross state lines for an abortion, eliminates controversial diversity initiatives, and eliminates taxpayer funding for “gender-affirming care,” which is likely to start another cycle of congressional haggling.

There are professionally constructive developments on the commercial side, though, as the Senate Armed Services Committee includes requirements for reviews of investment policy and performance evaluation. The bill also authorizes DoD to identify poor-performing contractors and require approval for additional contracts. The question remains, though, whether government should still retain an exclusive role in building certain specific space defense capabilities on its own and which ones these should be.

When and how the congressional process concludes, and the end game for the FY 2025 Space Force budget, remain to be seen. It should be extremely clear—no less is at stake than the US and its allies prevailing against common adversaries, for, in, and from space. In short, getting funding priorities right may affect who controls the high ground.

Christophe Bosquillon is a Senior Fellow at the National Institute for Deterrence Studies. He has over 30 years of international experience in general management, foreign direct investment, and private equity and fund management across various industries in Europe and the Pacific Basin. Views expressed in this article are the author’s own.

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