Pentagon may put SpaceX at the center of a sensor-to-shooter targeting network - Ars Technica

US Air Force Staff Sgt. Antonio Vicere, a member of the 1st Combat Camera Squadron, deploys a SpaceX Starshield terminal at Royal Australian Air Force Tindal, Australia, on August 4, 2024. Credit: US Air Force photo by Senior Airman Mitchell Corley

Pentagon Plans to Center SpaceX's Starshield in Military Satellite Network

Trump Administration Proposes Shift from Competitive Program to SpaceX-Dominated MILNET System

July 2, 2025

The Trump administration appears to be positioning SpaceX as central to major military space initiatives:

Current Reality:

• SpaceX is already the primary contractor for the MILNET network with 480+ satellites
• SpaceX has an existing $1.8 billion classified contract with the National Reconnaissance Office for spy satellites
• SpaceX is described as "the only turnkey commercial solution" currently available, with Starlink having around 7,000 satellites already operational

Strategic Dependence: The Pentagon increasingly relies on SpaceX for:

• Launch services (already the leading provider for Space Force missions)
• Satellite communications through Starlink/Starshield
• Critical infrastructure for the $175 billion Golden Dome missile defense system

The Concern: Senator Chris Coons questioned whether "handing this to SpaceX make us dependent on their proprietary technology and avoid the very positive benefits of competition"

Why SpaceX Has the Advantage:

• Proven scale with thousands of satellites already deployed
• Vertically integrated operations (builds, launches, and operates its own satellites)
• Cost advantages over traditional defense contractors
• Ability to deliver "operational capabilities on orbit, on the timelines that operators are looking for"

So while there are alternatives like Amazon's Project Kuiper in development, SpaceX currently has a near-monopoly on the scale and capability the military needs for these ambitious space-based defense systems.

The Pentagon is planning to significantly expand SpaceX's role in U.S. military operations by potentially replacing a competitive satellite program with a secretive network that relies heavily on the company's Starshield constellation, according to budget documents and congressional testimony.

MILNET Takes Center Stage

The Trump administration has requested $277 million to launch a new program called "pLEO SATCOM" or "MILNET," which would comprise "480-plus" satellites operated by SpaceX but overseen by a military mission director "who communicates to the contracted workforce to execute operations at the timing and tempo of warfighting."

The move would cancel funding for the Space Development Agency's Tranche 3 data relay satellites and replace them with this commercial solution, marking a significant shift in how the military approaches satellite communications.

Key Details of the MILNET Network

The MILNET SATCOM network will use SpaceX's Starshield satellite terminals configured for military use, featuring enhanced encryption compared to consumer Starlink terminals. The network will also be able to access SpaceX's commercial Starlink satellites through these specialized terminals.

The project is being managed through a partnership between the Space Force and the National Reconnaissance Office (NRO), with the secretive nature stemming from its connection to the NRO's classified contract with SpaceX for intelligence, surveillance, and reconnaissance satellites.

Supporting the Golden Dome Initiative

General Chance Saltzman, chief of space operations, told senators that the data transport layer will "underpin" the Pentagon's planned Golden Dome missile defense system. The Golden Dome is Trump's $175 billion missile defense initiative announced in May 2025, intended to create a space-based network capable of detecting and intercepting missiles from countries like China, Russia, Iran, and North Korea.

The satellite network will also support broader military objectives beyond missile defense. Colonel Robert Davis from Space Systems Command explained that satellites will eventually perform 3D data fusion in orbit to generate targeting solutions that could be transmitted directly to weapons systems, enabling near-instantaneous automated strikes.

Congressional Concerns Over Vendor Lock

The shift to SpaceX-dominated operations has sparked significant concern among lawmakers about reducing competition and creating vendor dependence.

Senator Chris Coons (D-Del.) questioned whether "handing this to SpaceX make us dependent on their proprietary technology and avoid the very positive benefits of competition and open architecture."

Senator John Hoeven (R-N.D.) warned about military dependence on private enterprise during wartime, to which General Saltzman agreed that the military "can't be dependent on it."

Cost and Competition Considerations

The Space Development Agency has awarded fixed-price contracts worth more than $5.6 billion for approximately 340 data relay satellites in Tranches 1 and 2, coming out to roughly $16 million per spacecraft—at least an order of magnitude more expensive than a Starlink satellite coming off SpaceX's assembly line.

The existing SDA program uses four vendors—Lockheed Martin, Northrop Grumman, York Space Systems, and Rocket Lab—to build spacecraft for Tranches 1 and 2, with Tranche 1 satellites due to begin launching this summer.

SpaceX previously built demonstration satellites for the Space Development Agency but didn't compete for subsequent contracts, partly because the SDA operates its constellation from government-run control centers, while SpaceX prefers to maintain operational control.

Technical Capabilities and Timeline

The Space Force's fiscal 2026 budget request includes $1.04 billion for the existing Transport Layer program, while also earmarking $277.4 million for MILNET technology maturation efforts.

The long-term intent is that all U.S. Space Force satellites will have the option to integrate compatible terminals and connect to MILNET for data transport, creating an unprecedented military hybrid mesh network in low Earth orbit.

Looking Forward

The Defense Department is conducting an "analysis of alternatives" regarding the future scope and architecture for MILNET, looking at both government-owned options and commercial solutions while considering ways to support a "scalable, multi-vendor satellite communication architecture that avoids vendor lock."

However, if the Space Force is looking for a turnkey commercial solution, Starlink and Starshield are currently the only options available today, putting SpaceX in a strong position for a massive windfall.

The decision represents a broader trend toward integrating commercial space capabilities into military operations, but raises fundamental questions about the balance between operational efficiency and maintaining competitive defense industrial base.

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Sources

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Pentagon may put SpaceX at the center of a sensor-to-shooter targeting network - Ars Technica