Finance
Analysis-Trump's Golden Dome plan could launch new era of weapons in space
Published by Global Banking & Finance Review®
Posted on May 22, 2025
4 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on May 22, 2025
4 min readLast updated: January 23, 2026
Trump's Golden Dome Initiative proposes a $175 billion space-based missile defense system, potentially escalating space militarization and involving major defense contractors.
By Joey Roulette
WASHINGTON (Reuters) -U.S. President Donald Trump's Golden Dome missile defense concept revives a controversial, decades-old initiative whose ambitious construction could upend norms in outer space and reshape relations between the world's top space powers.
The announcement of Golden Dome, a vast network of satellites and weapons in Earth's orbit set to cost $175 billion, could sharply escalate the militarization of space, a trend that has intensified over the last decade, space analysts say.
While the world's biggest space powers - the U.S., Russia and China - have put military and intelligence assets in orbit since the 1960s, they have done so mostly in secrecy.
Under former President Joe Biden, U.S. Space Force officials had grown vocal about a need for greater offensive space capabilities due to space-based threats from Russia and China.
When Trump announced his Golden Dome plan in January, it was a clear shift in strategy, one that emphasizes a bold move into space with expensive, untested technology that could be a financial boon to U.S. defense contractors.
The concept includes space-based missiles that would launch from satellites in orbit to intercept conventional and nuclear missiles launched from Earth.
"I think it's opening a Pandora's box," said Victoria Samson, director of space security and stability at the Secure World Foundation think tank in Washington, referring to deploying missiles in space. "We haven't truly thought about the long-term consequences for doing so," she added.
Samson and other experts said Golden Dome could provoke other states to place similar systems in space or to develop more advanced weapons to evade the missile shield, escalating an arms race in space.
The Pentagon did not immediately respond to a request for comment.
Russia and China reacted differently to the latest news from Trump. A Chinese foreign ministry spokesperson said it was "seriously concerned" about the project and urged Washington to abandon its development, adding that it carried "strong offensive implications" and heightened the risks of the militarization of outer space and an arms race.
A Kremlin spokesperson said Golden Dome could force talks between Moscow and Washington about nuclear arms control in the foreseeable future.
Primarily seeking to defend against a growing arsenal of conventional and nuclear missiles from U.S. adversaries Russia, China and smaller states such as North Korea and Iran, the Golden Dome plan is a revival of a Cold War-era effort by former U.S. President Ronald Reagan's Strategic Defense Initiative (SDI), better known as the "Star Wars" program.
SDI envisioned stationing a constellation of missiles and powerful laser weapons in low-Earth orbit that could intercept a ballistic nuclear missile launched anywhere on Earth below, either in its boost phase moments after launch or in its blazing-fast cruise phase in space.
But the idea never came to fruition mainly because of technological hurdles, as well as the high cost and concerns it would violate an anti-ballistic missile treaty that has since been abandoned.
'WE'RE READY'
Golden Dome has strong and powerful allies in the defense contracting community and the growing defense technology arena, many of whom have been preparing for Trump's big move into space weaponry.
"We knew that this day was likely going to come. You know, we're ready for it," L3Harris Chief Financial Officer Ken Bedingfield said in an interview with Reuters last month.
"L3 Harris has an early start of building the sensor network that will become the foundational sensor network for the Golden Dome architecture."
Trump ally Elon Musk's rocket and satellite company SpaceX has emerged as a frontrunner alongside software firm Palantir and drone maker Anduril to build key components of the system, Reuters reported last month.
Many of the early systems are expected to come from existing production lines. Attendees at the White House press conference with Trump on Tuesday named L3Harris, Lockheed Martin and RTX Corp as potential contractors for the massive project.
But Golden Dome's funding remains uncertain. Republican lawmakers have proposed a $25 billion initial investment for it as part of a broader $150 billion defense package, but this funding is tied to a contentious reconciliation bill that faces significant hurdles in Congress.
(Reporting by Joey Roulette; Additional reporting by Mike Stone; Editing by Jamie Freed)
The Golden Dome plan is a missile defense concept proposed by Donald Trump that involves a network of satellites and weapons in Earth's orbit, aimed at intercepting missiles launched from Earth.
The Golden Dome project is set to cost approximately $175 billion.
Experts warn that the Golden Dome could provoke other nations to develop similar systems, potentially escalating an arms race in space.
China expressed serious concern over the project, urging the U.S. to abandon its development, while Russia suggested it could lead to renewed talks on nuclear arms control.
Key players include defense contractors like L3Harris, Lockheed Martin, and SpaceX, which are positioned to build components of the Golden Dome system.
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