The final version of the fiscal 2026 defense policy bill calls for adding $1.2 billion to the Space Force’s research and development accounts, an increase that’s mostly split between two efforts: expanding the service’s low-Earth orbit data transport network and boosting its space-based missile warning and tracking capabilities.
House and Senate lawmakers on Dec. 7 released the compromise version of the 2026 National Defense Authorization bill, and the House cleared a key procedural vote ahead of expected passage Dec. 10.
The bill proposes giving the Space Force $16.6 billion for research and development. That includes a $500 million boost for the Space Development Agency’s Tranche 3 Transport Layer and $474 million for the polar segment of the Next-Generation Overhead Persistent Infrared system.
While the NDAA does not actually appropriate funds for the Pentagon, it does include spending recommendations that offer a sense of congressional authorizers’ priorities.
The Transport Layer funding, if adopted in the annual appropriations bill, would increase SDA’s fiscal 2026 budget for the program to $1.8 billion. That comes as the program’s future is in question amid a Space Force review of its future data transport architecture. Its budget request nixed funding for Tranche 3 Transport Layer satellites, stalling plans to award contracts in 2026. Lawmakers, however, want that funding reinstated.
The Space Force’s ongoing review—which is expected to wrap up in time for the fiscal 2027 budget release next spring—considers what combination of data transport satellites the service will need in the future. Along with SDA’s architecture, the service is weighing at least one other option, a lesser-known constellation called MILNET, which was developed by the National Reconnaissance Office and USSF. SpaceX is reported to be the sole contractor, but defense officials have said the plan is for multiple companies to provide spacecraft an ground terminals.
Both constellations are designed to provide low-latency communications to military operators and are in the early stages of development and fielding. It’s not clear how many MILNET satellites are in orbit today. SDA has launched 61 transport satellites and plans to launch another 84 spacecraft next year as part of the program’s Tranche 1. Another 182 spacecraft are on contract beyond that.
During a Senate Appropriations Committee hearing in June, lawmakers questioned the Space Force’s plan. Sen. Chris Coons, D-Del., argued that MILNET has “no competition, no open architecture, no leveraging a dynamic space ecosystem.”
At the time, Chief of Space Operations Gen. Chance Saltzman and Air Force Secretary Troy Meink said they hadn’t made any final decisions on how to proceed.
Maj. Gen. Stephen Purdy, acting USSF acquisition executive, told reporters in September at AFA’s Air, Space & Cyber Conference, that the discussion was still in the “active debate” stage.
“What we’re talking about is, what’s the future? Do you expand on that in the exact same format? Do you expand on that with different systems? How do you build a competitive aspect to that?” he said. “These are all debate topics. We clearly want to maintain the connectivity. Exactly how we’re going to mechanically do that, both contractually and technically, is the piece that’s under debate.”
Missile Warning & Tracking
The Space Force’s fiscal 2026 budget request did not include funding for the polar leg of its Next-Generation Overhead Persistent Infrared program. Instead, the service planned to rely on $723 million in reconciliation funding, which Congress passed this summer. The $474 million plus-up would give the service nearly $1.2 billion for the effort.
The bill doesn’t offer an explanation for the increase, though it does include a provision requiring the Space Force to adjust its acquisition strategy to add a payload called the Advanced Payload Suite-Alpha, APS-A, to the program of record.
Northrop Grumman is the prime contractor for Next-Gen OPIR Polar. It has been developing the satellite’s mission payload alongside Ball Aerospace, which is now owned by BAE Systems. The Space Force plans to field two polar satellites as part of the program.
A second Next-Gen OPIR segment, built by Lockheed Martin, will reside in geosynchronous orbit. Those satellites also feature the APS-A payload.
Next-Gen OPIR spacecraft are likely to play a role in the early phases of the Pentagon’s Golden Dome effort, which will stitch together existing and new systems to create an advanced shield to protect the U.S. from missile threats. The department expects the first segments of that capability to be operational in 2028, according to Golden Dome Director Gen. Michael Guetlein.
