The US Air Force is thinking about making a major change in how it buys military satellites. Right now, different companies build these satellites for the military. But now, the Air Force is looking at using SpaceX’s Starshield satellites instead.
US Air Force Considers Big Change in Satellite Deals
This information came out during a Senate hearing on March 27, 2025. A senator revealed that the Air Force might cancel existing satellite deals and switch to SpaceX. The satellites in question are part of an important space project called the Space Development Agency’s Transport Layer. This system helps the military send information quickly using a network of satellites in low Earth orbit.
Some people worry that this change could hurt other companies that have worked hard to develop military satellites. It could mean fewer opportunities for smaller space companies to compete in the industry.
Contracts Could Be in Danger
Right now, several companies have contracts to build satellites for this project. York Space Systems and Northrop Grumman are already working on these satellites. Another company, Terran Orbital, had a contract but lost it after another company, Viasat, challenged the decision. That contract is now being reconsidered.
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However, contracts for the next set of satellites have not been given out yet. If the Air Force decides to go with SpaceX, it could mean that companies expecting future contracts might not get them.
There are also technical concerns. SpaceX’s Starshield satellites were not originally designed for this project. In 2023, the military said that SpaceX’s satellites were not at the right altitude in space for their needs. However, if the US Air Force decides to change the rules, SpaceX could become a key player in military space operations.
US Air Force Responds to Concerns
At the hearing, the nominee for the top Air Force position, Troy Meink, said he was not aware of any final decisions. He stressed that he believes in open competition, where many companies can try to win military contracts. He said that having more competition usually leads to better technology and lower costs for the government.
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After the hearing, the Air Force released a statement saying that no final decisions had been made. The US Air Force and the Space Force are still reviewing their plans and budgets for 2026. They are working with the government to decide the best path forward.
This possible change could have a big impact on the future of military space programs. If the Air Force moves forward with SpaceX, other defense companies may lose out on major contracts. The final decision will likely depend on budget discussions and national security needs.
