Space Force Awards SpaceX $2.29 Billion Contract for LEO Satellite Network

S. 29 billion contract to accelerate development of a low-Earth orbit satellite constellation for data transport. The agreement, issued under Other Transaction Authority, requires the company to deliver a fully operational prototype by the end of 2027.

The constellation, previously called MILNET and based on SpaceX's Starshield satellites, will function as the backhaul layer for the Space Data Network.

Command stated the network will provide robust, resilient, high-capacity, and low-latency data transport for the Joint Force. It will consist of an optically interconnected mesh of satellites delivering worldwide tactical and broadband communications. The fiscal 2026 budget allocated $277 million for the program. 6 billion for procurement, both to be funded through the reconciliation package.

Integration with Existing Systems Col.

Ryan Frazier, acting Space Force portfolio acquisition executive for Space Based Sensing & Targeting, said the backbone supports the broader Space Data Network. That network is planned as a mesh of satellites in multiple orbits and will include the Space Development Agency's Transport Layer satellites.

The service said the Space Data Network will link sensors to shooters and support the Pentagon's Golden Dome missile defense shield.