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WASHINGTON — Lawmakers raised alarms May 14 over reported plans by the Trump administration to slash funding for commercial satellite imagery procurement — a move critics say could undercut U.S. intelligence capabilities and contradict stated White House priorities.
During a hearing of the House Armed Services Committee’s Strategic Forces subcommittee, Rep. Seth Moulton (D-Mass.), the ranking Democrat, called out what he described as “rumors” that the National Reconnaissance Office (NRO), under direction from the Office of Management and Budget, had been ordered to scale back funding for commercial imagery in its fiscal year 2026 budget request.
“I am especially concerned about the rumor that the National Reconnaissance Office, at the direction of OMB, has slashed commercial imagery funding lines in the FY26 budget,” Moulton said during the session on national security space programs.
Rep. George Whitesides (D-Calif.) echoed Moulton’s concerns, warning that reductions in funding for commercial remote sensing by both the NRO and the U.S. Space Force “seem to go against stated administration priorities.” In a recent executive order, President Trump directed the Pentagon to favor commercial technologies in defense procurement.
Any reductions in commercial imagery buys would be concerning, he said, “partly because there’s so much going on in space and there’s such a great demand for this data,” Whitesides added. “It also seems to go against stated administration priorities, and we also want to make sure that we’re maintaining a sort of a wide base of suppliers.”
Neither lawmaker provided specifics on the size or scope of the proposed cuts.
‘We very much value commercial capabilities’
The hearing featured testimony from senior defense and intelligence officials, including NRO Director Christopher Scolese, Andrea Yaffe from the Pentagon’s space policy office, Vice Adm. Frank Whitworth who heads the National Geospatial-Intelligence Agency (NGA), and Maj. Gen. Stephen Purdy, the top procurement officer in the U.S. Space Force.
Scolese, whose agency is responsible for developing and operating the nation’s spy satellites and also for procuring commercial satellite imagery for U.S. government use, did not directly confirm or deny the rumored budget reductions. However, he emphasized the critical role of commercial data in supporting defense and intelligence missions.
“We very much value the commercial capabilities and intend to keep on using those,” Scolese said. “It’s largely based on demand, of course, but commercial is absolutely critical to what we’re doing. And I would add, it’s not just the commercial imagery, it’s also commercial RF and also newer phenomenologies as we’re working with industry to go off and help advance those.”
Whitworth declined to comment on potential cuts, noting that commercial imagery procurement is handled exclusively by the NRO, while NGA focuses on using and analyzing the imagery once obtained.
The NRO has increasingly turned to commercial satellite providers for imagery in recent years, most notably through its Electro-Optical Commercial Layer (EOCL) contract — an expansive, $4 billion, 10-year initiative launched in 2022. The EOCL marked the largest commercial imagery deal in the agency’s history, with Maxar Technologies receiving the bulk of the contract, up to $3.24 billion. Smaller portions went to BlackSky and Planet Labs.
EOCL aims to leverage high-resolution, electro-optical imagery — captured in visible light — provided by private satellite constellations. Although the deal spans a decade, the funding must be approved annually by Congress.
Industry sources said the administration is considering cuts that could affect the EOCL contract. Commercial Earth observation data is widely used by the Department of Defense and intelligence agencies.
Moulton argued that such cuts would hinder access to critical imagery and also undercut innovation in the fast-growing commercial space sector.
“Across the board, there are companies outpacing DoD innovation in satellite communications, remote sensing, space domain awareness, and defending our satellites on-orbit,” he said. “Yet despite consistent pressure from this subcommittee, the culture shift to maximize the benefit of commercial space continues to meet considerable resistance.”
Moulton also expressed worries over broader reductions reportedly proposed in the Space Force’s fiscal 2026 budget.
“I was willing to criticize the previous administration for failing to invest more in space, and I will criticize this one for the same failure,” Moulton said. “Cuts to the Space Force would be catastrophic.”
Cuts to the NRO’s budget would come amid a broader reshuffling within the U.S. intelligence community. The Trump administration has moved to reduce personnel across key agencies including the CIA, NSA, NRO, and NGA, citing efficiency efforts.
The hearing on Wednesday also marked NRO Director Scolese’s final appearance before the subcommittee, according to Strategic Forces Chairman Rep. Scott DesJarlais (R-Tenn.). The administration has not publicly announced a leadership change at the NRO. A spokesperson for the agency said in a statement to SpaceNews that Scolese “continues to serve, at the pleasure of the President, as the Director of the National Reconnaissance Office.”
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