Funding for the Space Development Agency’s next round of missile tracking satellite contracts has been temporarily diverted to cover troop salaries during the ongoing government shutdown, according to a Breaking Defense report citing government and industry sources.
The diversion affects awards planned for SDA’s Tranche 3 Tracking Layer. The awards, originally expected this month, are now on hold pending new budget authorizations.
How Much SDA Funding Is Affected?
The Department of Defense previously announced plans to reallocate about $8 billion from unobligated research and development accounts to sustain military pay through the shutdown. Multiple programs, including SDA’s Tranche 3 effort, are among those impacted.
An industry source familiar with the program told Breaking Defense that the SDA faces a reduction of roughly $700 million, affecting both Tranche 3 planning and milestone payments tied to Tranche 2 development.
What Is the Tranche 3 Tracking Layer?
The Tranche 3 Tracking Layer is a network of low Earth orbit satellites designed to detect and track ballistic and hypersonic missile launches. SDA intends to select three companies, each delivering 18 satellites, to expand global missile detection and early warning coverage.
The new constellation will build upon capabilities from earlier iterations, which include infrared sensors capable of identifying missile launches and supporting targeting data for interceptors.
Will Funding Be Restored?
A government source knowledgeable in acquisition matters indicated that research and development accounts used to pay military salaries will be reimbursed once full fiscal year funding resumes, noting that the repayment will likely include Tranche 3 Tracking Layer funding because of its direct link to the Golden Dome defense shield.
