Space and Tech
Office of Space Commerce faces an uncertain future amid budget cuts and new oversight
Michael Liemohn, University of Michigan
When I imagine the future of space commerce, the first image that comes to mind is a farmer’s market on the International Space Station. This doesn’t exist yet, but space commerce is a growing industry. The Space Foundation, a nonprofit organization for education and advocacy of space, estimates that the global space economy rose to US$613 billion in 2024, up nearly 8% from 2023, and 250 times larger than all business at farmer’s markets in the United States. This number includes launch vehicles, satellite hardware, and services provided by these space-based assets, such as satellite phone or internet connection.
Companies involved in spaceflight have been around since the start of the Space Age. By the 1980s, corporate space activity was gaining traction. President Ronald Reagan saw the need for a federal agency to oversee and guide this industry and created the Office of Space Commerce, or OSC.
So, what exactly does this office do and why is it important?
As a space scientist, I am interested in how the U.S. regulates commercial activities in space. In addition, I teach a course on space policy. In class, we talk about the OSC and its role in the wider regulatory landscape affecting commercial use of outer space.
The OSC’s focus areas
The Office of Space Commerce, an office of about 50 people, exists within the Department of Commerce’s National Oceanic and Atmospheric Administration. To paraphrase its mission statement, its chief purpose is to enable a robust U.S. commercial interest in outer space.
OSC has three main focus areas. First, it is the office responsible for licensing and monitoring how private U.S. companies collect and distribute orbit-based images of Earth. There are many companies launching satellites with special cameras to look back down at the Earth these days. Companies offer a variety of data products and services from such imagery – for instance, to improve agricultural land use.
A second primary job of OSC is space advocacy. OSC works with the other U.S. government agencies that also have jurisdiction over commercial use of outer space to make the regulatory environment easier. This includes working with the Federal Aviation Administration on launch licensing, the Federal Communications Commission on radio wavelength usage and the Environmental Protection Agency on rules about the hazardous chemicals in rocket fuel.
This job also includes coordinating with other countries that allow companies to launch satellites, collect data in orbit and offer space-based services.
In 2024, for example, the OSC helped revise the U.S. Export Administration Regulations, one of the main documents restricting the shipping of advanced technologies out of the country. This change removed some limitations, allowing American companies to export certain types of spacecraft to three countries: Australia, Canada and the United Kingdom.
The OSC also coordinates commercial satellites’ flight paths in near-Earth space, which is its third and largest function. The Department of Defense keeps track of thousands of objects in outer space and issues alerts when the probability of a collision gets high. In 2018, President Donald Trump issued Space Policy Directive-3, which included tasking OSC to take this role over for nongovernment satellites – that is, those owned by companies, not NASA or the military. The Department od Defense wants out of the job of traffic management involving privately owned satellites, and Trump’s directive in 2018 started the process of handing off this task to OSC.
To prevent satellites from colliding, OSC has been developing the traffic coordination system for space, known as TraCSS. It went into beta testing in 2024 and has some of the companies with the largest commercial constellations – such as SpaceX’s Starlink – participating. Progress on this has been slower than anticipated, though, and an audit in 2024 revealed that the plan is way behind schedule and perhaps still years away.
Elevating OSC
Deep in the text of Trump’s Aug. 13, 2025, executive order called Enabling Competition in the Commercial Space Industry, there’s a directive to elevate OSC to report directly to the office of the secretary of commerce. This would make OSC equivalent to its current overseer, NOAA, with respect to importance and priority within the Department of Commerce. It would give OSC higher stature in setting more of the rules regarding commercial use of space, and it would make space commerce more visible across the broader economy.
So, why did Trump include this line about elevating OSC in his Aug. 13 executive order?
Back in 2018, Trump issued Space Policy Directive-2 during his first term, which included a task to create the Space Policy Advancing Commerce Enterprise Administration, or SPACE. SPACE would have been an entity reporting directly to the secretary of commerce. While it was proposed as a bill in the House of Representatives later that year, it never became law.
The Aug. 13 executive order essentially directs the Department of Commerce to make this move now. Should the secretary of commerce enact the order, it would bypass the role of Congress in promoting OSC. The 60-day window that Trump placed in the executive order for making this change has closed, but with the government shutdown it is unclear whether the elevation of OSC might still occur.
Troubles for OSC
While all of this sounds good for promoting space as a place for commercial activity, OSC has been under stress in 2025. In February, the Department of Government Efficiency targeted NOAA for cuts, including firing eight people from OSC. Because about half of the people working in OSC are contractors, this represented a 30% reduction of force.
In March, Trump’s presidential budget request for the 2026 fiscal year proposed a cut of 85% of the $65 million annual budget of OSC. In July, space industry leaders urged Congress to restore funding to OSC.
The Aug. 13 executive order appeared to be good news for OSC. On Sept. 9, however, Bloomberg reported that the Department of Commerce requested a 40% rescission to OSC’s fiscal year 2025 budget.
Rescissions are “clawbacks” of funds already approved and appropriated by Congress. The promised funding is essentially put on hold. Once proposed by the president, rescissions have to be voted on by both chambers of Congress to be enacted. This must occur within 45 days, or before the end of the fiscal year, which was Sept. 30.
This rescission request came so close to that deadline that Congress did not act to stop it. As a result, OSC lost this funding. The loss could mean additional cutbacks to staff and perhaps even a shrinking of its focus areas.
Will OSC be elevated? Will OSC be restructured or even dismantled? The future is still uncertain for this office.
Michael Liemohn, Professor of Climate and Space Sciences and Engineering, University of Michigan
This article is republished from The Conversation under a Creative Commons license. Read the original article.
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Last Updated on February 10, 2026 by Daily News Staff
Valerie Thomas is a true pioneer in the world of science and technology. A NASA engineer and physicist, she is best known for inventing the illusion transmitter, a groundbreaking device that creates 3D images using concave mirrors. This invention laid the foundation for modern 3D imaging and virtual reality technologies.
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Beneath the Waves: The Global Push to Build Undersea Railways
Undersea railways are transforming transportation, turning oceans from barriers into gateways. Proven by tunnels like the Channel and Seikan, these innovations offer cleaner, reliable connections for passengers and freight. Ongoing projects in China and Europe, alongside future proposals, signal a new era of global mobility beneath the waves.
For most of modern history, oceans have acted as natural barriers—dividing nations, slowing trade, and shaping how cities grow. But beneath the waves, a quiet transportation revolution is underway. Infrastructure once limited by geography is now being reimagined through undersea railways.
Undersea rail tunnels—like the Channel Tunnel and Japan’s Seikan Tunnel—proved decades ago that trains could reliably travel beneath the ocean floor. Today, new projects are expanding that vision even further.
Around the world, engineers and governments are investing in undersea railways—tunnels that allow high-speed trains to travel beneath oceans and seas. Once considered science fiction, these projects are now operational, under construction, or actively being planned.
Undersea Rail Is Already a Reality
Japan’s Seikan Tunnel and the Channel Tunnel between the United Kingdom and France proved decades ago that undersea railways are not only possible, but reliable. These tunnels carry passengers and freight beneath the sea every day, reshaping regional connectivity.
Undersea railways are cleaner than short-haul flights, more resilient than bridges, and capable of lasting more than a century. As climate pressures and congestion increase, rail beneath the sea is emerging as a practical solution for future mobility.
What’s Being Built Right Now
China is currently constructing the Jintang Undersea Railway Tunnel as part of the Ningbo–Zhoushan high-speed rail line, while Europe’s Fehmarnbelt Fixed Link will soon connect Denmark and Germany beneath the Baltic Sea. These projects highlight how transportation and technology are converging to solve modern mobility challenges.
The Mega-Projects Still on the Drawing Board
Looking ahead, proposals such as the Helsinki–Tallinn Tunnel and the long-studied Strait of Gibraltar rail tunnel could reshape global affairs by linking regions—and even continents—once separated by water.
Why Undersea Rail Matters
The future of transportation may not rise above the ocean—but run quietly beneath it.
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Space and Tech
Blue Origin Launches First Human Spaceflight of 2026 with New Shepard NS-38
Blue Origin successfully completed its first human spaceflight of 2026 with New Shepard NS-38, carrying six private astronauts and marking 98 humans flown to space.
Blue Origin has officially kicked off its 2026 flight calendar, successfully completing the 38th mission of its New Shepard program and further solidifying its role in commercial human spaceflight.
The suborbital flight, known as NS-38, carried six private astronauts beyond the Kármán line, offering several minutes of weightlessness and sweeping views of Earth before a safe return to West Texas. The mission marks the first New Shepard launch of 2026 and another milestone for Blue Origin’s reusable spaceflight system.
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The NS-38 Crew
The six-person crew aboard NS-38 included:
- Tim Drexler
- Dr. Linda Edwards
- Alain Fernandez
- Alberto Gutiérrez
- Jim Hendren
- Dr. Laura Stiles
With this flight, New Shepard has now flown 98 humans into space, representing 92 individual passengers. The growing total reflects Blue Origin’s emphasis on routine, repeatable access to space—once considered experimental, now becoming operational.
A Reliable Start to 2026
Blue Origin leadership emphasized reliability and customer trust as central priorities moving into the new year.
“As we enter 2026, we’re focused on continuing to deliver transformational experiences for our customers through the proven capability and reliability of New Shepard,” said Phil Joyce, Senior Vice President of New Shepard. “We are grateful for our astronaut customers who put their trust in our team to bring this experience into reality.”
The fully reusable New Shepard rocket and capsule system has demonstrated strong safety performance, autonomous operations, and consistent recovery—key elements in scaling human spaceflight.
Building Toward a Larger Vision
Beyond space tourism, New Shepard plays a foundational role in Blue Origin’s long-term goal of enabling millions of people to live and work in space for the benefit of Earth.
As the company’s first operational human spaceflight system, New Shepard supports:
- Reusable launch vehicle testing
- Human-rated safety system validation
- Increased launch cadence and manufacturing expertise
- Future Blue Origin programs and missions
Each successful flight expands operational confidence while helping normalize commercial access to space.
What’s Next for Aspiring Astronauts
Blue Origin continues to accept interest from future New Shepard passengers, with additional flights expected throughout 2026. The company also released commemorative merchandise from the NS-38 mission, now available through the Blue Origin Shop.
As commercial spaceflight matures, missions like NS-38 highlight the industry’s shift from novelty to normalcy—bringing space closer to scientists, explorers, and private citizens alike.
Related Articles & Information
- Blue Origin – New Shepard Program Overview
Official overview of Blue Origin’s reusable suborbital rocket and human spaceflight system. - Blue Origin – Human Spaceflight Missions
Details on past and upcoming crewed New Shepard missions. - NASA: Humans in Space
NASA’s overview of human spaceflight history and current programs. - Commercial Spaceflight: How Private Companies Are Changing Access to Space
STM Daily News coverage of the growing space tourism and commercial launch industry. - Reusable Rockets Explained: Why They Matter
An explainer on reusable rocket technology and its impact on space exploration.
For more updates, insights, and in-depth coverage of space exploration and commercial spaceflight, visit the STM Daily News blog at stmdailynews.com. From mission breakdowns to industry trends and technology explainers, STM Daily News keeps you informed about humanity’s journey beyond Earth.
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