Trump's Space Industry Plans: Cutting Red Tape & Winners

Deregulation of Commercial Space Under President Trump

President Donald Trump, during a press conference held in late 2024, publicly committed to significantly reducing what he termed “job-killing regulations” if re-elected.

He specifically promised to eliminate ten existing rules for every new regulation implemented.

New Focus on Space Industry Regulations

This commitment to deregulation is now being extended to the commercial space sector.

The President has directed federal agencies to expedite launch licensing procedures, accelerate the development of spaceports, and restructure the Federal Aviation Administration’s (FAA) industry advisory board.

Executive Order Details

An Executive Order, signed on August 13th, asserts that “inefficient permitting processes discourage investment and innovation,” thereby hindering the competitive position of U.S. companies in the global space market.

The order mandates the Department of Transportation (DOT) to revise launch and reentry licensing regulations, removing those deemed “outdated, redundant, or overly restrictive.”

FAA Directives

Specifically, the FAA, operating under the DOT, is instructed to streamline environmental reviews.

The agency is also tasked with easing the process for constructing new spaceports and designating a “senior executive” to champion “innovation and deregulation.”

Commerce Department's Role

Furthermore, the Commerce Department is directed to establish a new process for authorizing “novel space activities.”

This includes activities such as in-space manufacturing and satellite refueling, which currently lack clear regulatory frameworks.

Changes to COMSTAC

Coinciding with the Executive Order, Transportation Secretary and acting NASA administrator Sean Duffy dismissed all members of the Commercial Space Transportation Advisory Committee (COMSTAC).

COMSTAC is a long-standing advisory board within the DOT responsible for shaping spaceflight regulations and priorities.

Industry Response

Companies previously facing lengthy environmental reviews and licensing delays have welcomed the order.

It signals the potential for reduced timelines and increased regulatory certainty for future projects.

The Commercial Space Federation, representing companies like SpaceX, Blue Origin, and Rocket Lab, praised the order for providing “regulatory relief to unleash the U.S. commercial space industry.”

Potential Benefits for Commercial Players

The new regulatory environment is expected to significantly benefit commercial space companies.

• Launch companies may experience faster permitting and more efficient environmental reviews.
• State-backed spaceport operators, such as Space Florida, could see accelerated development of new facilities.

Advantage for Emerging Technologies

The creation of a mission authorization framework for “novel” space activities is particularly significant.

Startups like Varda Space Industries and Orbit Fab, focused on in-space pharmaceutical manufacturing and orbital refueling respectively, may benefit from a Commerce-led regulatory approach.

Points of Contention Regarding Environmental Regulations

The recent directive has not been met with universal approval. The Center for Biological Diversity (CBD), a prominent environmental advocacy organization actively contesting the Federal Aviation Administration’s (FAA) authorization of SpaceX’s Starship initiative in Texas, has characterized the order as “reckless.”

Jared Margolis, a senior attorney with the organization, stated that yielding to the demands of influential corporations by permitting federal agencies to disregard established environmental legislation is profoundly hazardous and jeopardizes public safety. He further asserted that this action demonstrably does not serve the broader public good.

Organizations such as the CBD contend that environmental impact assessments are not “excessively complicated,” as the Order suggests. Instead, they frequently find these assessments to be fundamentally lacking in thoroughness.

In 2023, these groups, including the CBD, formally accused the FAA of conducting an insufficient environmental evaluation of SpaceX’s operations in South Texas, alleging violations of the National Environmental Policy Act.

SpaceX has concurrently undertaken a more visible effort to oppose what it deems as “unnecessary” regulations and environmental studies, citing these as obstacles to a more accelerated testing schedule.

Several factors remain uncertain. Potential legal challenges to the order could impede advancement, and the composition of the newly appointed COMSTAC members will significantly shape the trajectory of space-related rulemaking.

Further Considerations

• The FAA’s approval process for Starship remains a focal point of debate.
• The adequacy of current environmental reviews is under scrutiny.
• The role of COMSTAC in future regulations is yet to be defined.

The debate highlights the tension between fostering innovation in the space industry and ensuring robust environmental protection. A balance between these competing interests will be crucial moving forward.