Competition Encouragement in the Space Commerce Sector by President Donald J. Trump
In a significant move, President Donald Trump signed the "Enabling Competition in the Commercial Space Industry" Executive Order (EO) on August 13, 2025. The EO, designed to promote innovation and streamline regulations, aims to substantially increase space launch cadence and novel space activities by 2030.
The EO outlines several key details to achieve these goals:
Streamlining Environmental Reviews and Licensing
The Secretary of Transportation, in consultation with the Chair of the Council on Environmental Quality (CEQ), has been directed to expedite environmental reviews and other barriers for commercial launch and reentry licenses and permits. This includes certain exemptions from the National Environmental Policy Act (NEPA). The EO also calls for a reevaluation of FAA regulations under 14 CFR Part 450, which govern commercial launch and reentry licensing, with a potential amendment or rescinding of outdated regulations.
Regulatory Reform and Innovation Promotion
The Secretary of Transportation is tasked with reviewing and removing outdated, redundant, or overly restrictive regulations related to launch and reentry vehicles. A dedicated advisor position is to be established within the Department of Transportation to foster innovation and deregulation in commercial space transportation. Additionally, an Associate Administrator for Commercial Space Transportation will be appointed within the FAA to drive regulatory reform.
Spaceport Infrastructure Development
The Secretary of Commerce, alongside the Secretaries of Defense and Transportation and the NASA Administrator, will evaluate States’ compliance with the Coastal Zone Management Act (CZMA) to identify and address any limitations or impediments to spaceport development. They will work to align review processes across agencies to eliminate duplicative regulations and speed the development of spaceport infrastructure.
Streamlining Authorization of Novel Space Activities
The EO mandates creating a streamlined process to authorize "novel space activities," meaning missions not clearly governed by existing regulations. This aims to enable American leadership in emerging and new space-based industries.
National Security and Competitiveness Focus
The EO acknowledges the importance of a competitive commercial space industry for national defense and sets ambitious goals to increase the number and scale of commercial launches and space activities by an order of magnitude by 2030. It responds to the need to diversify launch providers and reduce reliance on single contractors for critical national security missions.
In addition to this EO, President Trump has established the Space Force, a new branch of the Armed Forces, designed to prepare the Department of Defense for evolving warfighting conditions and expand capabilities. He has also vowed to send astronauts to Mars in his first remarks of his second term. This latest deregulatory action builds on NEPA reform, the elimination of burdensome DEI requirements, and other complex rules that increase business operating costs.
President Trump has released seven Space Policy Directives, instructing NASA to return American astronauts to the Moon, reform commercial space regulatory framework, establish cybersecurity principles for space systems, and more. In 2020, a commercial company sent humans into orbit as part of NASA's Commercial Crew program, a first in history. This EO represents a comprehensive effort to reduce regulatory burdens, modernize space launch licensing, foster innovation, and boost infrastructure to maintain U.S. leadership in the rapidly evolving commercial space sector.
- The EO, aimed at promoting innovation and reducing regulations in the commercial space industry, also includes a focus on streamlining environmental reviews and licensing for commercial launch and reentry.
- To foster innovation and deregulation in commercial space transportation, a dedicated advisor position will be established within the Department of Transportation, alongside an Associate Administrator for Commercial Space Transportation within the FAA.
- The EO directs the Secretary of Commerce, along with other federal leaders, to address any limitations or impediments to spaceport development, with a goal of aligning review processes and eliminating duplicative regulations.
- Recognizing the importance of a competitive commercial space industry for national defense and leadership in emerging space-based industries, the EO establishes a streamlined process to authorize "novel space activities," thereby enabling American dominance in future space-related businesses and technology.
