Government contracts
Executive Order validates current commercial space strategy after NASA terminated $400 million in contracts
The Trump Administration recently issued a new Executive Order titled "Modernizing Defense Acquisitions and Spurring Innovation in the Defense Industrial Base." The directive, announced April 9, 2025, aims to reform the Department of Defense's procurement processes by prioritizing commercial products and streamlining defense acquisitions. Colonel Richard Kniseley, head of the Commercial Space Office (COMSO) within the Space Force's Space Systems Command, described the order as "an exclamation point" on initiatives already underway to modernize how the Pentagon procures space-based capabilities. Despite the push for commercial integration, Kniseley cautioned that expanding the use of private-sector services will require time and additional resources.
The new Executive Order, coming shortly after NASA's contract cancellations, demonstrates the Trump Administration's broader initiative to reshape federal funding priorities for companies and capabilities in the space sector.
On March 21, 2025, the Trump Administration's Department of Government Efficiency (DOGE) announced that NASA had canceled contracts and grants worth up to $420 million. In following DOGE’s guidance, NASA’s cuts will impact research projects and educational programs across the US. While NASA has not provided details on which contracts were selected for termination, the agency shared that the cuts include three contracts worth $15 million each to consultancies for "Change Management Support Services."
This announcement adds to growing uncertainty about NASA and its workforce since the beginning of the new Trump Administration. Recent organizational changes have included the closure of three offices at NASA Headquarters and the layoff of 23 employees, with plans in development for more extensive restructuring that could significantly impact headquarters operations.
Satellite
Space Force to demonstrate satellite refueling capabilities in coming years
The US Space Force has announced plans to conduct groundbreaking satellite refueling demonstrations in 2026 and 2028, marking a significant advancement in space asset sustainability. These demonstrations aim to extend the operational lifespan of critical satellites by developing the capability to replenish their fuel supplies while in orbit, potentially transforming how military space assets are maintained and utilized.
The first demonstration in 2026 will focus on proving the basic concept and technology required for orbital refueling, using purpose-built test vehicles to validate the approach. Following this initial test, the more ambitious 2028 demonstration will attempt to refuel an operational satellite, showcasing the practical application of this technology in real-world conditions. Space Force officials indicate that success in these missions could lead to widespread implementation across their satellite constellations.
This initiative represents a strategic shift in space operations philosophy, moving from treating satellites as disposable assets to viewing them as maintainable infrastructure. Beyond the immediate military applications, experts suggest these demonstrations could accelerate similar commercial developments, potentially reducing the long-term costs of space operations and addressing the growing concern of orbital debris. The technology could ultimately enable more complex and longer-duration missions throughout Earth orbit and beyond.
“Satellite refueling technology represents a paradigm shift from disposable spacecraft to sustainable space infrastructure, potentially saving billions in replacement costs while extending mission capabilities,” noted Julie Kearney, Co-Chair of DLA Piper’s Space Exploration and Innovation practice. “This breakthrough could redefine the economics of space operations by allowing valuable assets to remain functional far beyond their designed lifespans, ultimately opening new frontiers in both government and commercial space activities."
AI
Space industry urged to accelerate AI adoption
Government and industry experts warned at a recent symposium organized by the Universities Space Research Association and George Washington University’s Space Policy Institute that the space sector must speed up adoption of artificial intelligence (AI) or risk falling behind. While AI has been used in space missions for decades, today's large language models and machine learning systems offer significantly expanded capabilities.
Defense officials also see AI as essential to future programs, remarked Bryan Dorland, Principal Director for Space Technology in the Office of the Assistant Secretary of Defense for Critical Technologies. This includes using AI to improve space domain awareness, provide autonomy for missions in cislunar space (where latency becomes an issue), and support the proposed Golden Dome missile defense system.
“As competitors are already leveraging AI for enhanced data analysis, companies in the space industry should consider incorporating AI technologies,” said Danny Tobey, Chair of DLA Piper's AI and Data Analytics practice. “Traditional aerospace organizations are particularly encouraged to follow the example of startups by adopting AI solutions for spacecraft systems and space-based data applications, as this technological integration has evolved from a novel advantage to a key competitive element.”
Sustainability
Space-based solar power an emerging reality
Once largely considered financially unfeasible, space-based solar power (SBSP) could become more accessible within the industry. New heavy-lift launch vehicles could reduce costs and provide adequate space for modular solar antennas, which may be robotically assembled in geostationary orbit to form kilometer-scale arrays. Developers have strategically shifted toward incremental progress on technical challenges in recent years, rather than rushing to build complete space solar farms.
Companies have successfully demonstrated some key SBSP abilities, including beaming radio-frequency energy to various antennas and sending concentrated sunlight more than 100 meters to power commercial solar arrays. Organizations in multiple countries are developing critical components like lightweight photovoltaics and microwave antennas, with upcoming orbital demonstrations planned between 2027 and 2030. These efforts are attracting investment as components and subsystems show practical applications beyond solar power collection.
Despite technological progress, SBSP still faces significant hurdles, including public skepticism about wireless power transmission and substantial technical, financial, and regulatory challenges. However, possible benefits are significant – unlike terrestrial solar power, orbiting stations could deliver energy continuously and direct it wherever needed. Military applications could be particularly promising, as beaming energy to remote locations could eliminate dangerous fuel transport missions. Some entities are already under contract to deliver several megawatts of SBSP by 2030, potentially demonstrating that the technology can provide affordable, abundant energy.
"Space-based solar power represents one of the most promising new markets for the commercial space sector, potentially transforming how we generate and distribute energy globally,” said Christian Ford, Co-Chair of DLA Piper’s Space Exploration and Innovation practice. “As launch costs decrease and demand for clean, reliable power increases, this once-theoretical concept offers companies opportunities across the value chain – from spacecraft manufacturing to orbital construction. The successful commercialization of this technology could also drive investment in space infrastructure while addressing global energy challenges."
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