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Impact of the Big Beautiful Bill Act Upon Alaska’s Space Industry

As of mid-July 2025, the Big Beautiful Bill Act has recently been passed.  Alaska Space spent some time going through the document in an effort to figure out if it will affect the space industry.  In total, five sections were found that may have a significant impact.


Committee on Armed Services (Title II, sections 20001-20013)

Title II covers increasing the Department of Defense's budget.  Shipbuilding will start utilizing automated and AI-enhanced production methods with a slated $450B.  Shipbuilding is also getting $4.943T for the expansion of unmanned small and medium surface vessels, and for the expansion of unmanned underwater vehicles.  Another $188B will go towards the development and testing of maritime robotic autonomous systems and enabling technologies.  While these are all slated for water-based resources, there are plenty of space applications that could dually use these systems.


The Department of Defense will also be receiving $17.933T for the following areas: directed energy capabilities, national security space launch infrastructure, military satellites, space-based and boost phase interception, military space-based sensors, Army space and strategic missile test range infrastructure restoration and modernization, and improved ground-based missile defense radars.  This is a lot of money being poured into infrastructure, research and development, and manufacturing (satellites, sensors, and other equipment).

U.S. Air National Guard photo by Tech. Sgt. Adam Keele
U.S. Air National Guard photo by Tech. Sgt. Adam Keele

Title II also has an extensive list of the production of various missiles and interceptors.  These systems operate with satellite data for operations, launch, tracking and targeting, and viewing use.  This could indicate an increase of satellites in orbit and groundstations on Earth.


Another portion of money going to the Department of Defense is for the production of "low-cost weapons", such as: a small unmanned aerial system (aka drones), prototyping and experimentation for military innovation, developing and integrating 5G/6G technologies, the use of high-altitude stratospheric balloons for military use, long-endurance unmanned aerial systems for surveillance, developing better positioning and navigation technology, improving artificial intelligence, and expanding the defense manufacturing technology program.  These systems are going to utilize satellites, applications (software, AI programming, etc), and new technology that will possibly impact commercial space through government contracts.

Starlink ground station, Ketchikan Alaska
Starlink ground station, Ketchikan Alaska

Space Force, which only has two bases, will be getting $68B for facility upgrades, but it is not mentioned how much of that will be going to Clear Space Force Base in Alaska.  $528B will be going towards military space situation awareness programs DARC and SILENTBARKER.  $1T is slated for the X-37B military space program.  Space Force will also see $3.650T going towards military satellites, $125B for military space communications, and $350B for military space command and control systems.


Overall, the Department of Defense will be seeing an increase within the space industry and space-related industries.  This should even spread to contractors taking part of government contracts for new or improvements to space-related infrastructure.  Some common elements here are an increase of satellites and satellite technology, artificial intelligence, automated manufacturing, an increase of infrastructure, new or improved groundstations, and more military and science based jobs.



Committee on Commerce, Science, Transportation (Title IV, sections 40001-40011)

The Coast Guard is first mentioned with the provisional funding for improvements and readiness.  Air traffic control, which utilizes satellite data on a 24/7 basis, is slated for modernization, upgrades, and new technology at $13.030T.


The space launch industry will see an increase of fees, based on cost per pound of payload, starting at $0.25 per pound in 2026 to $1.50 per pound in 2033.  This could have a significant impact upon the commercial space industry over the next ten years.


Missions to Mars, the Artemis mission, and Moon to Mars programs are also included within Title IV with a predetermined budget of $9.995T to last through 2032.  $700B of that budget is obligated to go towards a high-performance Mars telecommunication orbiter, no later than fiscal year 2026.  $2.600T of that budget goes towards NASA's "Gateway" lunar-orbital space station to cover fiscal years 2026-2028.  $4.1T of the budget will go towards NASA's Artemis mission, spread out over fiscal years 2026-2029.  $20B will go towards a multi-purpose crew vehicle for NASA called Orion.  $1.250T will go towards operation expenses for the International Space Station, spread out over the fiscal years 2025-2029.  $1T is designated towards infrastructures at manned spaceflight centers, divided between John C Stennis Space Center, John F Kennedy Space Center, Lyndon B Johnson Space Center, George C Marshall Space Flight Center, the Michoud Assembly Facility, and transportation of space vehicles to these spaceflight centers.


The National Oceanic and Atmospheric Administration will have "unobligated balances" rescinded.  This means they are losing part of their budget, which will result in loss of data, research, employees, and important information that the public relies on.  Other areas seeing similar budget reductions are travel promotion, alternative fuel and low-emission aviation technology, and the public wireless supply chain innovation fund.



Mining.  (Title V Committee on Energy and Natural Resources Subtitle B, sections 50201-50204)

The only focus regarding mining is coal.  There is no in-situ resource utilization (ISRU) space mining mentioned.  This could indicate that further commercial development is needed.


Committee on Environment and Public Works (Title VI, sections 60001-60026)

Title VI is full of budget cuts that will effect: clean heavy-duty vehicles, greenhouse gas reduction, diesel emissions reductions, addressing air pollution, low emissions electricity, Clean Air Act, American Innovation and Manufacturing Act, enforcement technology and public information, greenhouse gas corporate reporting, environmental product declaration assistance, methane emissions and waste reduction, greenhouse gas air pollution plans and implementation grants, EPA reviews, low-embodied carbon labeling for construction materials, environmental and climate justice block grants, ESA recovery plans, environmental and climate data collection, neighborhood access and equity grant program, federal building assistance, low-carbon materials for federal buildings, GSA emerging and sustainable technologies, environmental review and implementation, and low-carbon transportation materials grants.  While this may seem like it's not space-related, a lot of the information at the base of each of these sections utilizes Earth observation (EO) satellite data.  This will impact the average person since it puts America on track to deal with an increase of pollution, reduced tracking of pollution, and an increase of unregulated manufacturing.


The only item receiving funding is the John F Kennedy Center for Performing Arts, which will receive $256.6B, spread out over fiscal years 2025-2029.


Termination of Green New Deal Subsidies (Title VII Chapter 5 Subchapter A, sections 70501-70515)

This section outlines the termination of various Green New Deal subsidies that focus on various types of energy efficiency such as the clean vehicle credit, alternative fuel vehicle refueling property credit, energy efficient home improvement credit, clean hydrogen production credit, and more.  This may impact the space industry by reducing or terminating research and development into energy efficient space improvements such as alternative rocket fuel sources and solar energy research.

Impact on Alaska’s Space Industry

The Big Beautiful Bill Act will impact Alaska's space industry with an increase of work at multiple military bases and at remote groundstations.  The recent agreement between Alaska Aerospace and the UAF Geophysical Institute to transform Poker Flat Research Range from a sub-orbital rocket range to a second spaceport, capable of orbital launches, should see funding. The University of Alaska system should also see some new and continued contract research and development funding from the Department of Defense and NASA.


Alaska isn't seeing provisions to help build a stronger commercial space industry directly through the Big Beautiful Bill Act.  The issue here is that Alaska does not have a strong commercial space manufacturing or application sector.  Any manufacturing or applications being performed is in-house by the military or by institutions (like the University of Alaska).  What we may see happen is the start of a northern silicon-valley form with the creation of a second spaceport, as long as investors are willing to help foot the bill for new business.




Citations:

Text - H.R.1 - 119th Congress (2025-2026): One Big Beautiful Bill Act. (2025, July 4). https://www.congress.gov/bill/119th-congress/house-bill/1/text


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