"Enhancing American Greatness in Space": President Trump Signs Executive Order to Expand the Domestic Commercial Space Industry

During his first term, President Donald Trump founded the US Space Force, saw the National Aeronautics and Space Administration (NASA) launch its first commercial crew operation through an industry partnership, and issued seven Space Policy Directives aimed at returning astronauts to the moon, establishing commercial and cybersecurity space protocols and reinvigorating human space exploration, among other things. Building off that legacy, President Trump recently signed Executive Order (EO) 14335, “Enabling Competition in the Commercial Space Industry.”¹ This EO takes a whole-of-government approach to expanding US leadership in the space industry by directing streamlined permitting for (1) commercial launch and reentry operations, (2) spaceport infrastructure, and (3) novel space activities. Given its scope, the EO marks a watershed moment in commercial space regulation and presents unique opportunities for developers of space projects.

Cutting Red Tape for Commercial Launch and Reentry Operations

All US commercial space operations must obtain launch and reentry licenses and permits from the Federal Aviation Administration (FAA) in the Department of Transportation (DOT). Issued in tandem with the FAA’s 1,000th commercial space operator license, President Trump’s EO seeks to “eliminate or expedite” environmental reviews and “other obstacles” for future launch and reentry permits. It does so by taking three significant steps:

Exempting Launch and Reentry From Legal Requirements

DOT is directed to exercise its rulemaking authority under 51 U.S.C. § 50905(b)(2)(C) to waive legal requirements for launch and reentry license and permits if the requirements are not necessary to protect public health, safety, or security.

Categorical Exclusions From National Environmental Policy Act (NEPA) Review

FAA launch and reentry authorizations are major federal actions that have generally been considered to have the potential to cause significant environmental effects under NEPA. The FAA has historically issued a “Finding of No Significant Impact” after preparing an environmental assessment, but the EO now directs DOT to use NEPA “categorical exclusions,”² which would eliminate the need for lengthy site-specific environmental reviews. Use of the categorical exclusion in this context will speed up the licensing process for commercial space flight but will likely draw opposition from environmental groups.

Review and Repeal of Licensure Requirements

The EO directs DOT to broadly review, revise, and rescind (where appropriate) regulations governing launch and reentry licensure,³ focusing on eliminating requirements for vehicles with automated flight safety systems and other features that may demonstrate reliability. DOT must report to the White House on these efforts within 120 days.⁴ 

Expanding Development of Spaceport Infrastructure 

With only twenty spaceports in the United States,⁵ the EO seeks to enhance the nation’s commercial launch capabilities by ramping up spaceport expansion and construction. To that end, the EO aims to streamline three categories of review: 

Confining State Powers

Under the Coastal Zone Management Act (CZMA), federal actions that have reasonably foreseeable effects on coastal resources must comply with state coastal management programs. The EO calls on the Department of Defense (DOD), DOT, and NASA to evaluate whether state CZMA implementation is improperly hindering development of spaceport infrastructure, and it further directs DOD, DOT, and NASA to similarly review state and local laws generally and notify the Department of Justice of any state impediments. These reviews may create new conflicts with state and local governments, especially California,⁶ regarding questions of federalism and a state’s ability to control activities in its coastal zones. 

Categorical Exclusions From Nepa Review

Just as with launch and reentry permits, the EO directs the White House Council on Environmental Quality to develop cross-agency spaceport categorical exclusions under NEPA.

Endangered Species Act (ESA) Exemptions

The EO directs DOD, DOT, and NASA to consider submitting all spaceport development projects to the Endangered Species Committee⁷ for ESA exemptions based on national security imperatives. 

Promoting Novel Space Activity

Beyond spaceport construction and launch and reentry operations, the EO seeks to promote new space activities, including space manufacturing and orbital refueling.⁸ Such activities are regulated under Article VI of the Outer Space Treaty,⁹ but they do not yet fall under existing regulatory frameworks. The EO requires the US Secretary of Commerce to develop a streamlined mission-authorization process for novel space activities within 150 days.

Conclusion

While it remains to be seen how vigorously the agencies will implement these streamlining reforms, President Trump’s EO is reinforced by structural changes across key departments that suggest an enduring shift toward expanded commercial space activities. Among other changes, the EO requires the Department of Commerce to elevate the National Oceanic and Atmospheric Administration’s Office of Space Commerce directly into the Secretary of Commerce’s office.¹⁰ Similarly, DOT must create a senior leadership position to advise its secretary on commercial space innovation and deregulation. Coupled with direction from the top that the agencies “stand ready to work with partners in industry,”¹¹ these developments strongly signal an openness to increased engagement and investment by US businesses developing commercial space projects.

Our Policy and Regulatory lawyers routinely monitor regulatory shifts and are available to help developers, lenders, investors, and other interested parties navigate this rapidly evolving landscape.