Golden Dome: America’s Proposed Space-Based Missile Defense

President Donald Trump has unveiled the "Golden Dome," a proposed $175 billion missile defense initiative aimed at protecting the U.S. from advanced missile threats, including ballistic, cruise, hypersonic, and space-based attacks.


The system—led by U.S. Space Force General Michael Guetlein—would be the first U.S. missile defense system to incorporate space-based weapons and sensors. An initial $25 billion funding request has been made, with full deployment targeted for 2029. Supporters argue it is a strategic necessity to counter advances by adversaries like China, Russia, and North Korea.


However, critics highlight concerns over its cost, technological feasibility, and the destabilizing implications for global nuclear deterrence. The plan is likely to reshape international security discourse and heighten geopolitical tensions, especially regarding the militarization of space.

Political Effects

Financial Effects

Economic Effects

Political Effects

Financial Effects

Economic Effects

Base Case Scenario (50% likelihood)

The Golden Dome moves forward in a scaled-back form, receiving partial funding over several fiscal cycles and integrating with existing land and sea-based systems rather than deploying full orbital interceptors by 2029. This version retains the political symbolism of a space deterrent while remaining within budgetary and technological constraints. Congress imposes oversight, and international backlash is managed through parallel diplomatic channels and renewed arms control dialogues. This outcome reflects political pragmatism and the technological hurdles of full deployment.



Upside Scenario (20%)

The Golden Dome achieves full funding and technological breakthroughs enable early deployment of space-based sensors and interceptors by 2028. China and Russia do not respond with significant escalation due to internal constraints or parallel arms control negotiations. The U.S. regains a strategic advantage in missile defense, and commercial aerospace sectors see strong growth driven by dual-use technologies. This outcome assumes a best-case alignment of political will, technological progress, and restrained global responses, making it less probable.



Downside Scenario (30%)

Escalation follows the announcement, with China and Russia accelerating their own missile and space weapons programs, citing the Golden Dome as justification. This erodes existing arms control regimes, causes new space debris risks from anti-satellite testing, and spurs NATO disunity over strategic responses. Domestically, the project becomes a fiscal quagmire, facing delays, cost overruns, and political blowback. Social spending is squeezed, and trust in U.S. arms control leadership diminishes. This scenario is plausible given the system’s destabilizing potential and the long history of missile defense projects suffering from feasibility issues and cost inflation.

Wednesday, May 21, 2025