President Donald Trump has issued an Executive Order (EO) titled “Enabling Competition in the Commercial Space Industry.” Published on August 13, 2025, the EO aims to streamline commercial space licensing and expedite regulatory review for United States-based operators, and to enable “a competitive launch marketplace and substantially increas[e] commercial space launch cadence and novel space activities by 2030.” The EO outlines key objectives and tasks that various government agencies must undertake to reduce regulatory barriers and reform United States regulatory space leadership.
With 60- to 180-day deadlines, the Order previews imminent regulatory change that will likely impact virtually every segment of the commercial space industry – from launch vehicle manufacturers and operators to spaceport developers, satellite constellations, insurers, investors, and state and local governments.
Highlights of the EO
- Launch and reentry licensing: The Secretary of Transportation must re-evaluate, amend, or rescind portions of 14 CFR 450 (“Launch and reentry license requirements”) and report within 120 days. Topics flagged for possible waiver include hybrid vehicles holding FAA airworthiness certificates and duplicative safety analyses.
- Next-generation spaceport infrastructure: The United States Department of Commerce (DOC), Department of Defense (DOD), Department of Transportation (DOT), and the National Aeronautics and Space Administration (NASA) must align and compress their review processes through an interagency Memorandum of Understanding (MOU) within 180 days. Meanwhile, new categorical exclusions under the National Environmental Policy Act (NEPA) will be created for routine spaceport activities. In the same time frame, agencies must “expedite” environmental and real-property approvals and may revoke state Coastal Zone Management Act approvals that impede development.
- Novel mission authorizations: DOC must publish a streamlined, time-bound authorization framework for Article VI Outer Space Treaty activities (excluding human spaceflight) within 150 days.
- Regulatory leadership: Senior deregulation advisors must be installed at the DOT, Federal Aviation Administration (FAA), and DOC within 60 days, and the Office of Space Commerce (OSC) will be elevated to the Office of the Secretary.
Commercial launch and reentry
Under the EO, the Secretary of Transportation, in consultation with the Council on Environmental Quality, will eliminate or expedite the DOT’s environmental reviews and other obstacles hindering the grant of launch and reentry licenses and permits.
The Secretary must re-evaluate, amend, or rescind 14 CFR 450. The EO includes specific items that the Secretary must include in their assessment of that regulation – for example, they must address whether regulatory requirements should be inapplicable or waived for hybrid launch or reentry vehicles that hold valid FAA airworthiness certificates.
Within 120 days of the EO, the Secretary must issue a status report describing the actions that have or will be taken in review of 14 CFR 450.
Next-generation spaceport infrastructure
The Secretary of Commerce, in consultation with the Secretary of Defense, the Secretary of Transportation, and the NASA Administrator, must evaluate (1) states’ compliance under the Coastal Zone Management Act, (2) the effect of noncompliance on the development of spaceport infrastructure, and (3) whether state approvals under that Act should be revoked. This evaluation must occur within 180 days of the EO.
The Secretary of Defense, the Secretary of Transportation, and the NASA Administrator must execute an MOU that (1) aligns review processes for spaceport development across agencies, (2) eliminates duplicative processes, and (3) preserves required federal space-exploration and National Security Space Launch capacity. This MOU must be executed within 180 days of the EO.
The Secretary of Defense, the Secretary of the Interior, the Secretary of Transportation, and the NASA Administrator must expedite their respective environmental and administrative reviews for authorizations, permits, approval, real property leases, and any other activity relevant to spaceport infrastructure development.
According to the EO, the Chair of the Council on Environmental Quality will establish new categorical exclusions under NEPA for actions related to spaceport development that normally do not significantly affect the human environment.
Novel space activity authorizations
With the goal of expediting and streamlining authorizations, the Secretary of Commerce will issue a proposal for individualized mission authorizations for activities covered by Article VI of the Outer Space Treaty of 1967. The proposal must be issued within 150 days of the EO. It must also include a definitive timeline for the grant or denial of authorization for the proposed activities and include clear and consistent requirements for applicants.
This section does not apply to human spaceflight.
Regulatory leadership and accountability
Within 60 days of the EO, the Secretary of Transportation must establish a new position within their office tasked with advising on the innovation and deregulation of the commercial space transportation industry. The FAA Administrator must also appoint a senior executive noncareer employee as the Associate Administrator for Commercial Space Transportation, and the Secretary of Commerce must elevate the OSC into the Office of the Secretary.
Below are a few comments from relevant government officials.
- Secretary of Transportation Sean Duffy posted on X that the EO will enable the United States to reach 2,000 launches in just 5 years, compared to 1,000 launches in the last 35 years.
- FAA Administrator Bryan Bedford stated that the EO “safely removes regulatory barriers so that United States companies can dominate commercial space activities.”
- Secretary of Commerce Howard Lutnick stated that the “visionary Executive Order unlocks boundless opportunities for our nation’s space pioneers and empowers them to lead the world into the vast frontier of tomorrow.” Further, Secretary Lutnick noted that the DOC and the OSC remain “ready to work with partners in industry and across the government to clear the way for United States businesses to lead the way across the space frontier.”
Implications for the commercial space industry
The EO could present a major opportunity for United States space operators to accelerate growth by reducing regulatory barriers. However, it also introduces tight deadlines for agency action that could reshape licensing, infrastructure development, and mission authorizations.
Key implications for the industry are outlined below.
- Operators may expect materially shorter licensing and environmental review periods, but they are also encouraged to (1) be prepared to respond quickly to meet equally compressed agency data requests and (2) consider timing new license or spaceport applications to comply with new requirements.
- Operators are encouraged to evaluate the changes to 14 CFR 450 that may impact safety analysis requirements, hybrid vehicle treatment, and waiver standards. Operators should also review their current licenses, permits, and environmental approvals to identify areas that may require updates or amendments.
- Existing licensees may need to amend applications or adjust operations to comply with new launch and reentry licensing requirements. Licensees may consider assessing whether planned activities could qualify for new categorical exclusions under NEPA.
- New NEPA categorical exclusions may eliminate the need for full Environmental Assessments (EAs) or Environmental Impact Statements (EISs) for many projects. However, early collection of project-specific data remains key.
- Operators are encouraged to review and update service agreements, financing documents, and lease agreements to reflect shorter and more dynamic regulatory schedules.
- Operators are encouraged to track agency deadlines by calendaring the 60-, 120-, 150-, and 180-day milestones set by the EO and plan executive briefings around expected rulemaking or policy releases.
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