Cuts in budget spending on satellite imagery threaten the industry

Satellite image providers are concerned about cuts in US budget spending on their purchases. They say that this decision contradicts the Trump administration’s plans to develop cooperation with private partners and could threaten the development plans of the entire industry. 

Satellite image of an Iranian nuclear facility. Source: BlackSky

Companies’ concerns

On June 25, representatives of a number of private companies, including Scott Curry, vice president of geospatial solutions at BlackSky, said they were concerned about the discrepancies between the statements made by Donald Trump’s administration and their financial proposals.

In particular, the US president has repeatedly stated that obtaining satellite data is one of the priority tasks. At the same time, the budget proposal for next year includes a significant reduction in spending on their purchase.

The reduction is $130 million, which means that the US will spend 30% less on purchasing these photos than last year. In particular, the acquisition of images obtained using synthetic aperture radar is not provided for at all.

Companies’ fears

All these plans have been known for several months, but for a long time, company representatives remained silent, hoping that something would change. But the time for Congress to make decisions is approaching, and the inconsistency between statements and financial plans remains.

And it’s not even about US security. According to company representatives, the industry is undergoing a transition period. Private customers are already providing significantly more funds than before, but government orders still remain the basis of their order portfolio.

Accordingly, they plan the development of their satellite constellations based on optimistic assumptions. For example, BlackSky has planned to launch 12 more third-generation satellites into orbit in 2026, but these plans may be adjusted due to budget cuts.

Using the example of Iranian nuclear program facilities that were damaged but not destroyed by US strikes, company representatives explain why the frequency of the aircraft’s returns to the shooting point is important. This indicator directly depends on the total number of satellites.

According to spacenews.com

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