White House Issues Long-Awaited Order to Revamp Commercial Space Regs

Key Points

• On August 13, 2025, the Trump administration issued an EO addressing several commercial space regulatory issues, with the overarching goal of streamlining commercial license and permit approvals for U.S.-based operators. The EO declares that “[e]nsuring that United States operators can efficiently launch, conduct missions in space, and reenter United States airspace is critical to economic growth, national security, and accomplishing Federal space objectives.”
• The EO directs relevant agencies to “eliminate or expedite” environmental reviews for commercial launch and reentry licenses and permits, specifically targeting the NEPA process, in response to longstanding industry concerns.
• The Order seeks to add a commercial space deregulation advisor within the Transportation Secretary’s office and elevates Commerce’s Office of Space Commerce into the Secretary’s office, while maintaining FAA’s Office of Commercial Space Transportation.
• The Order directs the Secretary of Commerce to propose a process for individual mission authorizations for activities covered by Article VI of the Outer Space Treaty of 1967, but not clearly or straightforwardly governed by existing regulatory frameworks, with the goal expediting and streamlining authorizations to enable American space competitiveness and superiority.
• There is an opportunity for industry and civil society stakeholders to petition and provide input to the Secretary of Commerce and Secretary of Transportation to inform execution of the Order and any proposals to be delivered under the Order.

Background

On August 13, 2025, the Trump administration issued a widely-anticipated executive order (EO, or the Order) covering a range of commercial space regulatory issues to streamline commercial license and permit approvals for U.S.-based operators. The EO directs relevant agencies to “eliminate or expedite” environmental reviews for commercial launch and reentry licenses and permits and reinforces the administration’s shift toward commercially-driven space development.

The launch industry actively advocated for many of the directives in the Order. Most recently and visibly, in a House hearing last year, Kelvin Coleman, the Federal Aviation Administration’s (FAA) former Associate Administrator for Commercial Space Transportation, highlighted industry concerns over the agency’s Part 450 launch and reentry licensing rule,¹ which represents FAA’s effort to modernize and streamline the rules for the launch and reentry of commercial space vehicles, and other FAA regulations.

The EO selectively reorganizes agency responsibilities, though it largely maintains existing hierarchies. Under federal law, the U.S. Department of Transportation (DOT) has statutory authority over FAA’s Office of Commercial Space Transportation (AST),² while the U.S. Department of Commerce oversees the Office of Space Commerce (OSC).³ The EO adds a new advisor within DOT’s Office of the Secretary (OST) tasked with advising the Secretary on deregulation in the commercial space transportation industry, but the Order stops short of elevating AST out of the FAA.⁴ By contrast, the EO elevates OSC directly into the Commerce Secretary’s office, aligning with longstanding industry preferences for stronger Commerce Department authority and for streamlined review processes.

The EO additionally addresses the long-standing question of reforming novel space activity authorization. Within 150 days of the Order, the Secretary of Commerce is directed to propose a process for individualized mission authorizations for activities that are covered by Article VI of the Outer Space Treaty of 1967, but not clearly or straightforwardly governed by existing regulatory frameworks, with the goal of expediting and streamlining authorizations to enable American space competitiveness and superiority. This proposal must solicit and consider feedback from affected agencies on the authorization process, contain a definitive timeline for the grant or denial of authorization for proposed activities, and include clear and consistent requirements for applicants. While the administration’s preference appears to favor placing this authority under Commerce, Congress ultimately retains the power to determine what additional authority the executive branch may exercise and which agency will oversee it. 

The EO declares it to be the policy of the United States to enable a “competitive launch marketplace” and to significantly grow “commercial space launch cadence and novel space activities by 2030.” Its directives are intended to accomplish these goals. A full summary of the EO’s policy directives to each agency is outlined below.

The EO’s Directives

• Reforming Regulatory Barriers to Commercial Launch and Reentry:
  • Ongoing: Directs DOT, in coordination with the Council on Environmental Quality (CEQ), to use all available authorities to streamline or remove environmental and regulatory barriers to launch and reentry licenses and permits, including revisions to FAA launch licensing regulations, eliminating National Environmental Policy Act (NEPA) review from certain eligible DOT functions, and using existing and new “categorical exclusions” under NEPA for launch and reentry licenses and permits.
  • Ongoing: Directs DOT to review and revise the FAA’s process for launch and reentry licensing. DOT is instructed to consider exemptions from regulatory requirements for launch vehicles with advanced safety systems or FAA airworthiness certificates, broaden reliability criteria for reentry vehicles, and remove requirements unrelated to actual launch or reentry.
  • December 11, 2025 (120 Days): Directs DOT to submit a report on actions taken pursuant to the above to the Assistant to the President for Economic Policy.
• Reforming Regulatory Barriers to Next Generation Spaceport Infrastructure:  
  • February 9, 2026 (180 Days): Directs Commerce, the U.S. Department of Defense (DoD), DOT and the National Aeronautics and Space Administration (NASA) to evaluate states’ compliance with the Coastal Zone Management Act and address state or local limits on spaceport development that may conflict with federal law.
  • Ongoing: Directs Commerce, DoD, DOT and NASA to notify the U.S. Department of Justice (DOJ) of any state or local limitations on spaceport development on federal lands that may be inconsistent with federal law.
  • February 9, 2026 (180 Days): Directs DOT, NASA and DoD to sign a memorandum of understanding (MOU) to align spaceport review processes, remove duplication, and preserve required federal space-exploration and National Security Space Launch capacity.
  • Ongoing: Directs DOT, DoD, NASA and the U.S. Department of the Interior to use all available authorities to expedite environmental and administrative reviews for spaceport-related activities, including establishing new categorical exclusions under NEPA in coordination with CEQ.
  • Ongoing: Directs DOT to consider the national security imperative of commercial space advancement when deciding whether involve the Endangered Species Committee in spaceport development projects.
• Reforming Novel Space Activity Authorization
  • January 12, 2026 (150 Days): Directs Commerce to create a proposal and present to the White House on a streamlined process for authorizing novel space activities which are not covered by existing rules in order to expedite and streamline authorizations for the sake of American space competitiveness and superiority. Commerce must seek feedback from affected agencies on the proposal, which must include a definite timeline in which authorizations would be granted or denied and have “clear and consistent requirements for applicants.”
• Reforming Regulatory Leadership and Accountability
  • October 13, 2025 (60 Days): Directs DOT to create a position within the Office of the Secretary to advise the Secretary on fostering innovation and deregulation in the commercial space transportation industry. DOT also must direct the FAA to appoint a senior executive noncareer employee to be the Associate Administrator for Commercial Space Transportation.
  • October 13, 2025 (60 Days): Directs Commerce to elevate the Office of Space Commerce into the Office of the Secretary.

Agencies Affected by the EO

Conclusion

Akin’s space law, regulation and policy team continues to advise clients on navigating the evolving regulatory landscape for the commercial space industry and will closely track implementation of the EO’s directives and the resulting opportunities for industry engagement, as well as parallel congressional efforts.

1 14 C.F.R. pt. 450.

2 Commercial Space Launch Act of 1984, 51 U.S.C. §§ 50901-50923.

3 51 U.S.C. § 50702.

4 DOT must direct the FAA to appoint a senior executive noncareer employee to be the Associate Administrator for Commercial Space Transportation.