Posted: 10th July 2025
By Sandra Erwin
Welcome to this week’s edition of SpaceNews’ Military Space, your source for the latest developments at the intersection of space and national security. In this week’s edition: Space Force makes moves on communications satellites and what’s next for defense after Trump signs the reconciliation megabill.
Tomorrow, SpaceNews is launching our first Mission Brief email series on Golden Dome, explaining the initiative and what it means for the industry. GDMU3Gc65.tzdKVxWe1KJWidYik-kvjKTMUnLN6KKt_Ey.0.Fr3X3zjdX0nu5AXHLKIXK”>sign up to receive it in your inbox every Tuesday. And we’re eager to hear your feedback and suggestions. You can hit reply to let me know.
An artist’s rendering of the Evolved Strategic Satellite Communications satellites, or ESS. These satellites will serve as the backbone of the United States’ nuclear command, control and communications network. Credit: Boeing
Boeing’s satellite business scored a major win in one of the most strategically significant defense space programs underway.
The company ESS satellites will eventually replace Lockheed Martin’s EHF constellation and provide jam-resistant, always-on connectivity between U.S. leadership and nuclear forces — even in the event of a nuclear strike. First delivery is slated for 2031.
Boeing said its winning architecture draws from proven designs used in its Wideband Global SATCOM (WGS) line and the commercial SES O3b mPOWER constellation.
DoD reboots military satcom strategy
In a surprise move, the Space Force is PTS-R program had both firms developing competing demonstration payloads.
But the next phase — a competition for full-scale production — is off. Instead, the Pentagon will pivot to a more modular and agile acquisition strategy, eyeing small GEO platforms and commercial satcom solutions to fill capability gaps.
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President Trump’s July 4 signing of the “GDMU3Gc65.tzdKVxWe1KJWidYik-kvjKTMUnLN6KKt_Ey.0.Fr3X3zjdX0nu5AXHLKIXm”>$150 billion into Defense Department coffers through reconciliation — a parliamentary maneuver that bypassed the usual appropriations gauntlet. For the space industry, the headline is $13.8 billion flowing to the Space Force through mandatory spending channels. Some of that funding is part of a $24.7 billion allocation for the Golden Dome missile defense project.
With this bill, the Pentagon secured authority to begin obligating funds in FY 2025 — with a five-year window to lock in contracts.
Shipbuilding makes up the largest share of the $150 billion at $29 billion, followed by $25 billion for munitions and $24.7 billion for Golden Dome.
Golden Dome funding is spread across nearly three dozen budget lines. Among the Golden Dome allocations focused on space:
Defense analyst Todd Harrison from the American Enterprise Institute calls this a “down payment,” not a long-term funding plan. Speaking last week on the FY 2026 budget jumps $11.3 billion from FY 2025 and totals $39.9 billion. But that includes $13.8 billion in mandatory funding from the reconciliation bill. Its discretionary budget — what Congress must appropriate annually — is actually lower than in past years.
Notable reconciliation-funded space programs:
The Space Force’s RDT&E (research, development, testing and engineering) request alone clocks in at $29 billion, with nearly half ($13.5 billion) coming from mandatory reconciliation funding.
The administration’s “one budget, two bills” approach means this mandatory spending is already locked in, while the discretionary portion still faces the traditional congressional appropriations process.
This method of funding the Defense Department is likely unsustainable, Harrison cautioned. “You’re going to fall off a cliff in fiscal year ‘27.” Why? Because reconciliation is a partisan maneuver that only works under full single-party control of the White House and Congress. It’s rare and hard to repeat, he said.
Although DoD can start obligating funds in FY 2025, most of the $150 billion — about $113 billion — is being counted toward FY 2026. This accounting quirk makes year-over-year comparisons tricky for investors and analysts.
Harrison said future discretionary budget caps, if flat or declining, could force DoD to cannibalize other programs in 2027 and beyond just to keep projects like Golden Dome afloat.
Short-term: This bill is a bonanza for major primes in missile defense and satellites — especially those with existing contracts or fast-pivot capabilities in interceptors, tracking sensors and classified spacecraft.
Long-term: Without repeat reconciliation authority or a new long-term funding line, programs started with this money will need to find space in an already strained base budget.
Northrop Grumman is positioning itself as a lead contractor for the Pentagon’s Golden Dome program, a sprawling $25 billion missile defense initiative modeled after Israel’s Iron Dome — but built for the U.S. homeland and threats like hypersonic, ballistic and cruise missiles.
The business case for the moon: The latest episode of Space Minds features a discussion on the future of commercial lunar exploration. The panel was recorded live as part of the ispace U.S. and Commercial Space Federation lunar landing watch event for the Hakuto-R Mission 2 on June 5. GDMU3Gc65.tzdKVxWe1KJWidYik-kvjKTMUnLN6KKt_Ey.0.Fr3X3zjdX0nu5AXHLKInW”>U.S. Air Force halts plan for rocket landing pads on remote Pacific atoll amid environmental backlash