T-Minus Space Daily: Funding Dropped for the Traffic Coordination System for Space

Release Date: July 1, 2025
Host: Maria Varmazis, N2K Networks

1. Overview

In today's episode of T-Minus Space Daily, host Maria Varmazis delves into significant developments within the space industry, with a particular focus on the recent budget cuts affecting the Traffic Coordination System for Space (TRACs). The episode also highlights key funding announcements for various space technology companies and features an insightful interview with Kirk Kohnert, Managing Partner at AE Industrial Partners and Chairman of the Board at Firefly Space.

2. Major News Highlights

a. NOAA Cuts Funding for TRACs

The National Oceanic and Atmospheric Administration (NOAA) has announced a substantial budget reduction impacting the Traffic Coordination System for Space (TRACs). Located on page 300 of NOAA's fiscal year 2026 budget, TRACs was envisioned as a U.S. public Space Situational Awareness (SSA) capability. Its purpose was to integrate government and commercial data to provide alerts for potential in-space collisions, thereby enhancing satellite operator safety.

Key Points:

• Budget Elimination: NOAA's new budget request allocates $0 for further development of TRACs.
• Policy Context: Space Policy Directive 3 (SPD-3) aimed to provide basic SSA data and Space Traffic Management (STM) services to the public without direct user fees. The directive encouraged support for both free and fee-based commercial SSA services.
• Government Stance: The U.S. administration contends that SPD-3's objectives have been met by leveraging private industry to deliver SSA services, including basic and concierge offerings to civil operators.
• Industry Reaction: Richard Dalbello, former director of NOAA's Office of Space Commerce, expressed concerns on social media, stating, “The US has a vital interest in shaping the emerging norms of orbital conduct. Abandoning tracks now would mute our voice at the very moment when international standards are being written” ([00:10]).

b. Funding Boosts for Other Space Companies

While TRACs faces funding cuts, several other space technology firms have secured significant investments:

1. LeoLabs Secures $4 Million from US Space Force:

   • Funding Details: A total of $4 million through the Space Force's SpaceWorks initiative, combining $2 million from the Air Force Research Laboratory and $2 million in private capital.
   • Purpose: To develop and deploy a software upgrade for LeoLabs' Scout Class radar, enhancing its ability to track highly maneuvering objects like missiles and hypersonic glide vehicles.
   • Previous Funding: This follows a recent $60 million strategic funding increase for deploying a Seeker Class Ultra High Frequency DRA radar in the Indo-Pacific by 2027.

2. Thalesaline Space Collaborates with CNES:

   • Project: Development of SOLIS (Service Optique de Liaison Spatiale Securiz), a high-throughput laser communications demonstrator.
   • Objectives: To demonstrate the viability of optical communications using geostationary satellites, leveraging technologies from the CNES-led Co Op project and the European Commission-funded VERTIGO project.
   • Deployment: The payload will launch aboard the ELAS Sat 5 geostationary satellite, with a pilot ground station in Cyprus.

3. Cituspace and Virago Technologies Partnership:

   • Collaboration: Validating and integrating next-generation Radiation Hardened Microcontrollers (MCUs).
   • Goals: Accelerate the development and deployment of Cituspace's platforms with enhanced MCU performance, aiming for production-ready deployment by 2026.

4. Momentous Expands In-Space Demonstrations:

   • New Contracts: Hosting Payload Services with Orbit FAB for the Podracer Space Domain Awareness mission.
   • Mission Details: Funded by the US Air Force Research Laboratory, Podracer will enhance space domain awareness through infrared imaging sensors and control modules, slated for a February 2026 launch via SpaceX.

3. Additional Industry Stories

Maria Varmazis, alongside senior producer Alice Cruz, touches upon several other noteworthy developments:

• Rocket Lab: Completed the critical design review for the Space Development Agency's T2TL beta constellation.
• European Space Agency (ESA): Anticipates the launch of MTG-S1 and Sentinel-4 missions.
• Teledyne Space (UK): Collaborating with Japan on a climate change mission.
• China's Tianwan 2: Released new images of Earth and the Moon, showcasing advancements in space imaging technology.

For more details on these stories, listeners are directed to the Selected Reading section in the episode's show notes on space.n2k.com.

4. In-Depth Interview with Kirk Kohnert

Guest: Kirk Kohnert, Managing Partner at AE Industrial Partners and Chairman of the Board at Firefly Space.

Discussion Points:

a. Role and Expertise

Kirk Kohnert oversees AE Industrial Partners' National Security investment team, focusing primarily on space-related ventures. He emphasizes the significant role of space within the national security portfolio and his involvement with various space companies, including Firefly Aerospace, York Space Systems, Red Wire Space, and Big Bear AI.

b. Investment Philosophy and Risk Tolerance

Kohnert discusses AE Industrial Partners' proactive approach to investing in the burgeoning space sector, likening it to a "new gold rush." He states:

“Space is mission-critical to some of the hardest national security problems. We try to convince people that it's easier now.” ([15:02])

He highlights the firm's willingness to take bold bets on space technologies, believing that with the right vision and leadership, challenges can be overcome. This risk tolerance is balanced by thorough due diligence to ensure investments are both enduring and resilient.

c. Current Market Excitements and Trends

Kohnert expresses enthusiasm for the evolution of space companies reaching growth and later-stage funding rounds. He notes the emergence of companies leveraging AI to solve complex space-related problems, such as:

“It's really about those people who can then kind of translate that to an actual solution to a problem and there's some great use cases out there, it's accelerating.” ([19:55])

He cites Big Bear AI and Red Wire Space as examples of firms effectively applying AI to space situational awareness and other domain-specific challenges. Kohnert believes that integrating advanced technologies like Large Language Models (LLMs) with space operations will drive significant innovations in the coming years.

d. Future Outlook

Kohnert is optimistic about the role of private capital in scaling space technologies:

“I think it's a once in a generation opportunity. It's a couple trillion dollar market in 10 years and there's a tremendous growth opportunity and I'm betting my credit career on it.” ([21:43])

He anticipates that as space becomes increasingly integral to national security and everyday infrastructure, the demand for scalable and innovative solutions will surge, presenting vast opportunities for investors and entrepreneurs alike.

5. Conclusion

Today's episode of T-Minus Space Daily underscores the dynamic and evolving landscape of the space industry. While budget cuts to initiatives like TRACs pose challenges to public SSA capabilities, substantial investments in private space companies signal robust growth and innovation. The insights shared by Kirk Kohnert illuminate the strategic approaches and optimistic outlook within the national security space sector, highlighting the pivotal role of private equity in shaping the future of space technology.

Stay tuned for more updates and expert analyses on the latest developments in the space industry.

Learn More:
For additional stories and in-depth coverage, visit space.n2k.com and explore the Selected Reading section in the episode's show notes.