President Donald Trump, during a press conference in late 2024, made a bold promise to eliminate job-killing regulations and remove 10 old rules for every new one in his second term. Now, he is extending this deregulation initiative to the commercial space sector, directing federal agencies to streamline launch licensing, expedite spaceport development, and overhaul the Federal Aviation Administration’s industry advisory board.
Indeed, commercial entities stand to benefit significantly from this new directive. Launch companies could enjoy expedited permitting processes and simplified environmental reviews. State-backed spaceport operators, such as Space Florida, might also find support in provisions that accelerate the construction of new facilities.
Establishing a framework for authorizing innovative space activities could have a profound impact. Startups like Varda Space Industries and Orbit Fab, working on technologies for pharmaceutical manufacturing in space and in-orbit refueling, respectively, may gain a competitive edge with a regulatory framework overseen by the Department of Commerce.
Environmental Concerns
However, not everyone is in favor of the executive order. The Center for Biological Diversity, an environmental organization that has contested the FAA’s approval of SpaceX’s Starship program in Texas, has denounced the order as “reckless.”
According to senior attorney Jared Margolis, bending environmental laws to accommodate powerful corporations poses significant risks and is not in the public interest. For groups like CBD, environmental reviews are not overly complex but often inadequate. In 2023, environmental groups, including CBD, accused the FAA of providing insufficient environmental assessments for SpaceX’s south Texas operations, breaching the National Environmental Policy Act.
SpaceX has also been vocal about its opposition to what it perceives as unnecessary regulations and environmental assessments hindering its testing operations.
While there is potential for legal challenges to impede progress, the selection of new COMSTAC members, yet to be finalized, will shape the future of space regulations.
