New FCC Space Rules Aim To Cut Collision Risk — But Spark A Fight Over Who Regulates Orbit Traffic

As low-Earth orbit becomes increasingly crowded, the risk of in-orbit collisions — and the debris fields they can create — is rising. The Federal Communications Commission has adopted a package of reforms that requires satellite operators to share accurate, timely tracking data and moves the agency from prescriptive to performance-based satellite approvals. While the measures have broad industry backing, they have also reignited a dispute over which federal agency should set rules for space safety.

Why This Matters

There are more than 18,000 active and inactive satellites currently in orbit, a number that has more than doubled in the past six years. Most operate in low-Earth orbit (LEO), where congestion increases the statistical likelihood of collisions. Such crashes could create cascades of debris that render portions of orbit hazardous or unusable for years.

What the FCC Approved

The FCC unanimously adopted a roughly 200-page regulatory package that includes two key elements:

• Mandatory Real-Time Data Sharing: Satellite operators would be required to provide accurate, timely telemetry to government space situational awareness (SSA) entities or to designated commercial SSA providers so space-traffic managers can better predict and prevent collisions.
• Performance-Based Licensing: The commission is shifting from detailed, prescriptive approval processes to performance-based rules that give operators flexibility in demonstrating they meet safety standards — a change intended to speed approvals and lower costs for startups and established companies alike.

Regulatory Turf Fight

Though the rules themselves have broad industry support, their adoption has reopened a debate over whether the FCC should play this regulatory role. Historically the de facto regulator for satellites because it manages spectrum licensing, the FCC faces pressure from lawmakers to cede space-traffic authority to the Department of Commerce. In February, House Science Committee ranking members Republican Brian Babin and Democrat Zoe Lofgren urged the FCC to abandon or modify the rules, arguing the agency lacks clear congressional authorization to regulate space safety. The FCC adopted the rules anyway, while the Department of Commerce’s role remains subject to funding and congressional decisions.

A SpaceX Falcon 9 rocket rises after launching from Vandenberg Space Force Base carrying 25 Starlink internet satellites, as seen from Pasadena, California, on April 6. - Mario Tama/Getty Images

Industry Reaction and Precedent

Industry groups and many operators welcomed the move. Commercial SSA firms such as LeoLabs — which runs a network of ground-based radars and already ingests real-time operator data — are likely candidates to be designated as data recipients. Supporters argue that requiring operators to share high-quality telemetry will fill critical visibility gaps left by telescopes and government radar alone.

The FCC has previously taken steps aimed at reducing orbital debris: in 2022 it required the disposal of defunct satellites within five years, and later required disclosures about whether satellites are designed to burn up on reentry. Advocates say the new data-sharing rules build on those efforts to make space activity safer as megaconstellations expand.

Benefits — And Open Questions

Proponents say the reforms will accelerate licensing, reduce costs and lower barriers for smaller companies by removing some onerous technical reviews and large financial bonds. Critics and some lawmakers, however, warn of overlapping authority and potential conflicts if Commerce issues its own rules. Implementation details remain unclear: the FCC must still identify which SSA entities will receive operator data and how enforcement and confidentiality of proprietary information will be handled.

“Orbital debris degrades the environment for all future space activity,” former FCC Chair Jessica Rosenworcel said in 2024. “So the policies we put in place to address it matter.”

What To Watch Next

Key next steps include how the FCC names commercial SSA partners, how it protects sensitive operator data, whether Congress or the Department of Commerce asserts overlapping authority, and how the new rules perform as megaconstellations scale. With ambitious plans from companies such as SpaceX, OneWeb and Amazon to deploy thousands — potentially hundreds of thousands — of small satellites, the urgency to build robust, interoperable space-traffic management systems is clear.