Citing Russia and China, he said that for years USA adversaries have "pursued weapons to jam, blind and disable our navigation and communication satellites via electronic attacks from the ground".
"We are going to have the Space Force", he said during a meeting of the National Space Council.
Some members of Congress advocated previous year for creating a Space Corps in the Air Force Department, similar to how the Marine Corps is part of the Navy Department.
For months, Trump has been calling for a Space Force, a new, free-standing military department, with its own chain of command and uniforms.
Finally, the proposal recommends creating a Space Operations Force consisting of space technology and warfare experts.
He said that a new position would be created for an assistant secretary of defense for space.
The reality: You can get the visions of humans fighting in space right out of your head-what's being proposed is an Earth-based group to protect American satellites.
Trump has strongly championed the idea of creating a space-focused military service with the same stature as the Air Force and the Army, turning his dreams of a "Space Force" into a rallying cry for supporters at political events. According to CNBC news, many American generals and other military officials oppose the 'Space Force'.
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But he, too, isn't convinced that a Space Force is the answer.
"We're building bipartisan support for our plan", he said.
The current branches of the U.S. military are the Navy, Coast Guard, Marine Corps, Army and Air Force.
Neither Mr. Pence nor Mr. Mattis offered any details on what it would cost to stand up the Space Force, but the administration reportedly will seek about $8 billion in funding. US Defense Secretary Jim Mattis threw his support behind that idea on Tuesday.
Kelly was referring to the Air Force Space Command, though the group has had different names over the years.
As Colbert moved onto Pence's widely-mocked speech to the Defense Department, he imagined what it would've been like if John F. Kennedy used his famous "we choose to go to the moon" speech in the context of the Trump era.
The Vice President first made it clear that the United States is not seeking to be the first nation to "militarize space" as some have contended.
The new command and reorganisation "should be budget neutral", Scott Pace, the executive secretary of the National Space Council, said in an interview.
Pence, who we really hope knows that Star Wars is a fantasy movie and not a documentary, said the time had finally come for the military to take charge in space after the environment has turned from "peaceful to contested" to "crowded and adversarial".