SpaceX Launch Gains Momentum as Trump Eases Rocket Regulations for Industry Growth

In a move aimed at reshaping the commercial space industry landscape, President Donald Trump has signed an executive order to ease regulations for rocket launches and related activities, potentially benefiting private space companies such as SpaceX and Blue Horizon. The order is part of a broader strategy to enhance the United States' competitive edge in space exploration and development, further facilitating an increase in the frequency of commercial space launches by 2030. This initiative is seen as crucial for economic growth and national security.

The executive order directs the Federal Government to streamline commercial license and permit approvals, reducing regulatory barriers and environmental reviews that have been deemed cumbersome by industry leaders. The order pushes for a more competitive launch marketplace and the establishment of next-generation space activities, which include orbital refueling and advanced defense systems. It aims to support American space operators in launching and conducting space missions with greater efficiency.

Transportation Secretary and acting NASA Administrator, Sean Duffy, has been tasked with eliminating or expediting the Department of Transportation's environmental reviews and other obstacles to granting launch and reentry licenses. This includes utilizing the Secretary's authority under 51 U.S.C. 50905(b)(2)(C) and establishing categorical exclusions under NEPA for certain launch and reentry licenses. Duffy will also review and potentially amend existing regulations under Part 450 of title 14, Code of Federal Regulations, which some industry officials argue are too burdensome and inhibit the rapid iteration of new space technologies like SpaceX's Starship/Super Heavy launch vehicle.

The FAA has faced criticism for the lengthy review process of launch permits, which some private space companies, including SpaceX, have cited as an impediment to increasing launch frequencies. There is concern among environmental groups regarding the order's provisions that might allow private space companies to bypass reviews required under the National Environmental Policy Act (NEPA), which is designed to ensure thorough environmental assessments are conducted for projects that could impact the environment.

Jared Margolis, a senior attorney at the Center for Biological Diversity, voiced concerns about the potential risks posed to both people and wildlife due to the reduction of environmental protections. Environmental groups have been critical of the FAA in the past, particularly regarding SpaceX's compliance with NEPA at its Boca Chica, Texas launch site.

For these space companies, including SpaceX, the executive order is expected to facilitate an increase in rocket-ship launches and landings. The FAA has already approved additional launches for SpaceX, with plans to increase the number of Starship launches in Texas from five to 25 annually and to increase Falcon rocket launches from Vandenberg Space Force Base in California from 50 to 95 per year.

The order goes beyond just the regulatory process, as it also emphasizes the development of next-generation spaceport infrastructure. The Secretary of Commerce, along with other key officials, will evaluate state compliance with federal regulations under the Coastal Zone Management Act, which affects spaceport development. The order also seeks the creation of a memorandum of understanding for streamlined spaceport development processes across relevant federal agencies while ensuring national security needs are met.

Furthermore, the order brings organizational changes within the Department of Transportation (DOT) and the Commerce Department. It calls for the creation of an advisory position within the Secretary of Transportation’s office, aimed at fostering innovation in commercial space transportation. Additionally, the Office of Space Commerce is elevated to a higher position within the Commerce Department to emphasize its importance for space competitiveness.

President Trump's move to deregulate the commercial space industry by altering environmental review procedures and streamlining licensing processes has three primary goals: to enhance the competitive launch marketplace in the U.S., to ensure that space-based industries, exploration, and defense technologies are pioneered domestically, and to fulfill federal space objectives supporting economic growth and national security.

Overall, this executive order is positioned to fortify the U.S. standing in the rapidly growing commercial space sector, fostering an environment that supports frequent launches and the development of next-generation space technologies. The push for deregulatory measures in the space industry aligns with the administration's broader efforts to accelerate infrastructure projects. Critics remain wary, emphasizing concerns over potential environmental and public safety risks, highlighting the ongoing balance between innovation and protection.