WASHINGTON – The Space Force once again has no plans to fund future iterations of its Space Development Agency (SDA)-managed data relay constellation, choosing instead to build a new constellation dubbed the “backbone” of the service’s budding Space Data Network (SDN), officials revealed.
“Tranche 3’s transportation layer is not funded,” Space Force officials said Tuesday. He spoke during a briefing with reporters at the Pentagon to announce the service’s fiscal year 2027 budget. “These requirements will be incorporated into the requirements met by the SDN backbone.”
SDA has long supported a constellation of satellites known as the transport layer, consisting of satellites launched into low-Earth orbit in successive tranches. However, the Space Force has recently moved away from that concept. Last year, the agency tried to cut funding for three SDA tranches, but Congress reinstated $500 million to continue the effort.
Around that time, Space Force officials were considering whether to terminate the transport layer in favor of a program called MILNET. The program, called MILNET, could move data relay missions to SpaceX satellites, Breaking Defense previously reported. Although it is no longer called MILNET, the Space Force is still keen on moving to that concept, although it is not clear what kind of system will be used.
During Tuesday’s budget briefing, Maj. Gen. Frank Verdugo, the Air Force’s assistant secretary for budget, confirmed that the $1.6 billion in settlement funds requested by the Air Force will build a new SDN backbone consisting of a diffused low-Earth orbit constellation. The backbone “used to be MILNET,” the general explained.
A Department of the Air Force (DAF) spokesperson further said in a statement to Breaking Defense that the SDN backbone effort, formerly known as MILNET, will be specifically funded in an acquisition budget line called “Diffused LEO SATCOM.”
The overarching SDN concept works similar to the way the transport layer was conceived, a global satellite communications (SATCOM) network that can quickly move data between sensors and shooters. The architecture is overseen by Col. Ryan Frazier, the Space Force’s portfolio acquisition executive for space-based sensing and targeting, and could be important for major projects like the Golden Dome missile defense shield.
“The SDN program line will field a pervasive LEO mesh constellation and associated ground architecture to provide resilient, high-capacity, low-latency communications and tactical data links for the joint force. Key efforts include the procurement of relay satellites as part of the SDN buildout, deployment of ground gateways, and the introduction of additional vendors into the architecture,” the spokesperson said. “The goal is to compete across SDN architectures while adhering to rapid delivery schedules.”
According to budget documents released earlier this month, the Space Force is requesting about $1.5 billion, all derived from the settlement, for research and development under a dedicated SDN budget line.
SDA also launches missile warning satellites in the so-called tracking layer, but Acting Director General Gurpartap “GP” Sandho told reporters on April 15 that SDA “will probably not exist” in the future as the new portfolio approach absorbs and realigns various space acquisition efforts. Sandhoo separately acknowledged that the scope of SDN has expanded to include the transport layer. The acting secretary himself will be named a portfolio executive to oversee the missile warning and tracking program.
Space Force 2027: Huge Funding
Officials at Tuesday’s briefing emphasized the explosive growth in Space Force personnel in fiscal year 2027. Splurge amounts are consistent across accounts. Compared to FY26 enacted levels, the Department of Defense is requesting a whopping 342 percent increase in space system purchases. Service research and development will be doubled. Operation and maintenance costs increase by 70%. and a 29 percent increase for military personnel.
Overall, officials are requesting a $71.1 billion budget for the Space Force in fiscal year 2027. That’s a 124% increase from $31.6 billion in fiscal 2026, according to a budget summary shared with reporters. (The above numbers include settlement funds requested along with the Pentagon’s base budget and do not include non-blue or “pass-through” spending that strictly goes to agencies outside the Pentagon.)
These additional dollars will fund priorities such as adding 2,800 Guardians to the service’s end-strength, with a particular focus on the “space, intelligence, cyber and acquisition career fields,” Verdugo said. Similarly, Verdugo said the increased funding will also benefit other missions, including space domain awareness, secure satellite communications, and even ambitious projects to track aircraft from the sky.
Despite increased funding, not all programs survived. The day before the budget cuts, the Space Force destroyed its long-troubled GPS ground system, known as OCX. And on budget day, a DAF spokesperson confirmed that the Space Force is not requesting any funding for missile warning satellites in polar orbit, known as Next Generation Overhead Persistent Infrared (OPIR) Polar (NGP).
Similar to the transportation layer, the Space Force attempted to zero out funding for Polar Bird in FY26, but Congress returned $436 million to continue development. A spokesperson said the service is “evaluating the feasibility” of the NGP program and “expects to make an acquisition decision in FY27.”
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