Summary
On August 13, 2025, President Trump signed an Executive Order (EO) that is poised to dramatically reshape the regulatory landscape for the U.S. commercial space industry. Titled “Enabling Competition in the Commercial Space Industry,” the EO directs various U.S. federal departments to coordinate efforts to streamline (a) launch and reentry permitting and licensing, (b) spaceport infrastructure development, and (c) “novel” space activities (missions not clearly governed by existing regulatory frameworks). The EO also moves the Office of Space Commerce (OSC) out of the National Oceanic and Atmospheric Administration (NOAA), where it currently resides, and allows the OSC to report directly to the Secretary of Commerce. These proposed regulatory overhauls seek to lower barriers to entry for U.S. space-related activities and catalyze investment in, and development of, U.S. space technologies. If implemented, U.S. companies in the space sector should prepare for reduced regulatory burdens.
Overview of the Executive Order
The EO outlines reforms across three major areas, enabling “a competitive launch marketplace and substantially increasing commercial space launch cadence and novel space activities by 2030.”
Launch and Reentry Licensing Report (Section 3)
- The EO directs the Department of Transportation (DOT), in consultation with the Council on Environmental Quality (CEQ), to “eliminate or expedite” environmental review for launch and reentry licenses, potentially using Categorial Exclusions from the National Environmental Policy Act for certain common activities.
- The DOT is also directed to “reevaluate, amend, or rescind, as appropriate” 14 CFR Part 450 (Part 450), the current Launch and Reentry License Requirements issued by the Federal Aviation Administration (FAA) in 2020 to streamline the DOT’s launch licensing process for commercial companies.
- The EO directs DOT to identify regulations that should be inapplicable for launch or reentry vehicles that have already achieved FAA airworthiness certifications, or which possess automated safety features.
- The EO also orders the DOT to consider which requirements represent “mission creep” because the requirements are too far attenuated from a vehicle’s actual launch or reentry.
- The EO directs DOT to provide a report of its changes to Part 450 within 120 days to the Assistant to the President for Economic Policy (e., by December 11, 2025).
Next Generation Spaceport Infrastructure (Section 4)
- The EO directs the Secretary of Commerce, in consultation with the Secretaries of Defense and Transportation and the Administrator of NASA, to identify state or local restrictions on spaceport infrastructure development that may be in conflict with the 1972 Coastal Zone Management Act.
- The Secretaries of Defense, Interior, and Transportation with the Administrator of NASA are also directed to eliminate duplicative regulations and “expedite their respective environmental and administrative reviews for authorization, permits, approval, real property leases, and any other activity relevant to spaceport infrastructure development.”
- The EO directs CEQ to work with the relevant departments to create the necessary Categorial Exclusions to expedite spaceport infrastructure development, and use the Endangered Species Committee of the Endangered Species Act (ESA) in light of the “significant natural security imperative inherent in commercial space advancement.” The Committee, sometimes called the “God Squad” for its ability to authorize activity that may lead to a species’ extinction, is a tool used to exempt federal actions from the ESA limitation on actions that “jeopardize the continued existence of any endangered species or threatened species or result in the destruction or adverse modification of habitat of such species . . . .” 16 U.S.C. 1536(a)(2).
Novel Space Activity Authorization and Leadership (Sections 5 and 6)
- The EO directs the Secretary of Commerce to develop a process for individualized streamlined mission authorization for novel space activities covered by Article VI of the 1967 Outer Space Treaty but not otherwise provided for in the existing regulatory framework.
- The EO also directs the establishment of an advisor for the Secretary of Transportation and additional positions within the FAA to foster innovation and deregulate the commercial space transportation industry.
A New Era for Commercial Space Activities
President Trump’s new EO seeks to develop policies in favor of terrestrial space infrastructure, space mission, and space technology and a deregulatory push to limit environmental review and other oversight mechanisms in support of that goal. The timing of the EO is also interesting. First, it coincides with the FAA’s ongoing efforts to revise Part 450 through the Part 450 Aerospace Rulemaking Committee (SpARC). The SpARC is expected to submit its report and recommendations in late summer 2025, and its work identifying specific proposed changes to Part 450 has been given new significance and urgency by the EO. Second, the EO comes at a time when the U.S. Transportation Secretary is also serving as acting NASA Administrator. Third, though the E.U. recently proposed a new Space Act that aims to establish a unified legal framework in the E.U. for space activities (including with a focus on environmental sustainability), this week’s EO brings the focus back to the U.S., highlighting opportunities for U.S. companies at all levels of space exploration – energy producers and manufacturers supporting terrestrial-to-space launch, launch service providers, in-orbit servicers and manufacturers, tourism, and new scientific endeavors. It remains to be seen whether the EO and its implementation – much of which will take time to go through the required public participation processes – will be challenged by state and local governments, as well as by environmental groups.
