Trump Seeks to Simplify Space Industry Regulations: Who Gains?

During a late 2024 press conference, President Donald Trump pledged to “remove substantial job-blocking regulations” in his forthcoming term, vowing to abolish 10 outdated rules for every new one introduced.

He is extending this deregulation effort to the commercial space industry, directing federal agencies to streamline launch licensing, accelerate the development of spaceports, and dissolve the Federal Aviation Administration’s advisory team for the industry.

“Cumbersome permitting processes stifle investment and innovation, limiting U.S. companies’ ability to thrive in global space markets,” he stated in an Executive Order signed on August 13.

The order requires the Department of Transportation (DOT) to abolish “obsolete, redundant, or overly restrictive” regulations related to launch and re-entry licenses. It also instructs the Federal Aviation Administration, part of DOT, to either fast-track or eliminate environmental assessments, facilitate new spaceport constructions, and designate a “senior executive” focused on fostering “innovation and deregulation.”

Additionally, the Commerce Department has been assigned the task of creating a new framework for approving “novel space activities,” such as in-space manufacturing or satellite refueling, which currently do not fit within existing licensing models.

This executive order coincided with the dismissal of all members of the Commercial Space Transportation Advisory Committee (COMSTAC) by transportation secretary and acting NASA administrator Sean Duffy. This advisory committee has been crucial in forming regulations and priorities related to spaceflight.

For companies previously impeded by environmental assessments and licensing delays, the order signifies a promising transition towards shorter timeframes and clearer regulatory pathways. The Commercial Space Federation, which includes companies such as SpaceX, Blue Origin, Rocket Lab, and others, expressed support for the executive order, stating it would provide “regulatory relief to advance the U.S. commercial space sector.”

Indeed, commercial entities are poised to benefit greatly from this new framework. Launch companies could enjoy the advantages of expedited permitting and streamlined environmental reviews. State-backed spaceport operators, such as Space Florida, may also gain from provisions that accelerate new site development.

Establishing a mission authorization framework for “novel” space activities is essential: startups like Varda Space Industries and Orbit Fab, which focus on manufacturing pharmaceuticals in space and in-orbit refueling respectively, may benefit from the regulatory reforms led by Commerce.

Concerns regarding environmental regulations

However, the order has not been universally embraced. The Center for Biological Diversity (CBD), an environmental organization that challenged the FAA’s approval of SpaceX’s Starship program in Texas, described the order as “reckless.”

“Accommodating powerful corporations by allowing federal agencies to bypass essential environmental laws is extremely risky and jeopardizes everyone. This is clearly contrary to the public interest,” stated senior attorney Jared Margolis.

Organizations like CBD argue that environmental reviews are not “overly complex,” as claimed in the order; instead, they often fall short. In 2023, environmental groups, including CBD, contended that the FAA’s environmental assessment of SpaceX’s plans in South Texas was insufficient and violated the National Environmental Policy Act.

SpaceX has also embarked on a public campaign against “unnecessary” regulations and environmental assessments that have delayed its testing endeavors.

There are still uncertainties ahead. Legal challenges to the order might obstruct progress, and the upcoming appointments of new COMSTAC members will shape the future of space regulation.