WASHINGTON — The heads of leading U.S. satellite imaging firms are urging Congress to reject proposed budget cuts to commercial remote sensing programs, warning the reductions could undermine national security and reverse years of progress in integrating private-sector innovation into intelligence and defense operations.
In a letter sent June 16 to key lawmakers on intelligence, armed services, and appropriations committees, the CEOs of Maxar Technologies, Planet, BlackSky, Iceye US, Capella Space, and ground systems provider KSAT called proposed cuts to the National Reconnaissance Office’s (NRO) commercial imagery programs “sweeping” and misaligned with long-standing bipartisan policy.
“As leaders in America’s remote sensing industry, we are deeply concerned that the Fiscal Year 2026 budget proposes sweeping cuts to commercial remote sensing programs,” the executives wrote.
The pushback follows reporting from SpaceNews that the Trump administration’s 2026 budget proposal includes a roughly 30% reduction — or about $130 million — in funding for the NRO’s procurement of electro-optical imagery under its Electro-Optical Commercial Layer (EOCL) program. That program supports long-term contracts with Maxar, BlackSky, and Planet to provide high-resolution satellite images to the U.S. government.
The administration’s proposal would also eliminate funding entirely for the acquisition of synthetic aperture radar (SAR) imagery — a type of remote sensing that gained new relevance after Russia’s 2022 invasion of Ukraine as SAR can penetrate cloud cover and operate in all weather conditions.
“The FY26 budget request entirely removes funding for a Commercial Synthetic Aperture Radar program, makes significant reductions to the Electro-Optical Commercial Layer (EOCL) program, and disregards funding for future commercial radio frequency (RF) acquisitions at scale,” the CEOs wrote, arguing that these actions contradict both recent executive branch guidance and long-standing congressional mandates.
They cited recent policy guidance from the Pentagon that emphasizes greater commercial integration, noting that President Trump’s executive orders and the Pentagon’s 2024 Commercial Space Integration Strategy call for expanded use of commercial technologies for national security purposes.
Government-owned vs. commercial
The letter also frames the cuts as strategically short-sighted in the context of competition with China. “Congress has laid out clear mandates to integrate commercial products and services into defense and intelligence operations. Those directives must not be ignored by bureaucratic apathy or institutional bias favoring government-owned systems,” the executives wrote, highlighting a broader tension within the intelligence community over whether to rely more heavily on commercial satellite capabilities or government-owned systems.
The NRO, which builds and operates the nation’s spy satellites, has increasingly turned to commercial providers in recent years as private companies have launched hundreds of small imaging satellites that can provide high-frequency coverage.
The companies behind the letter said they have poured capital into satellite constellations and infrastructure over the past decade, betting that sustained government demand would support both national security needs and the growth of a globally competitive U.S. industry.
“Our companies have invested billions of dollars in space and ground technologies, created highly skilled jobs, and deployed hundreds of satellites that now underpin critical defense, intelligence, and civil missions,” the CEOs said.
The cuts represent a “retrenchment from adopting commercial remote sensing capabilities,” they argue, and risk long-term damage to public-private models that have been adopted across the U.S. government.
The letter follows similar criticism from the U.S. Chamber of Commerce, which earlier this month warned the cuts could jeopardize America’s technological lead. “Preserving and expanding investment in commercial remote sensing programs is crucial to maintaining America’s strategic edge and ensuring the safety and security of our nation and its allies,” wrote John Neal, executive director of space policy at the Chamber.
