During a press conference in late 2024, President Donald Trump vowed to “slash massive numbers of job-killing regulations” in his second term and pledged to eliminate 10 old rules for every new one. Now, he is bringing that deregulation drive to commercial space, ordering federal agencies to streamline launch licensing, fast-track spaceport development, and clear out the Federal Aviation Administration’s industry advisory board.
“Inefficient permitting processes discourage investment and innovation, limiting the ability of U.S. companies to lead in global space markets,” he stated in an executive order signed on August 13. The order directs the Department of Transportation to cut “outdated, redundant, or overly restrictive” rules governing launch and re-entry licenses. It also instructs the Federal Aviation Administration, which operates under the DOT, to eliminate or accelerate environmental reviews, simplify the process for building new spaceports, and appoint a senior executive tasked with fostering “innovation and deregulation.”
The Commerce Department has also been ordered to establish a new process for authorizing “novel space activities,” such as in-space manufacturing or satellite refueling, that do not fit neatly into existing licensing frameworks.
The executive order coincided with Transportation Secretary and Acting NASA Administrator Sean Duffy dismissing every member of the Commercial Space Transportation Advisory Committee (COMSTAC), a long-standing industry advisory board within the DOT that shapes spaceflight rules and priorities.
For companies that have faced years of environmental reviews and licensing delays, the order signaled a shift toward shorter timelines and clearer regulations. The Commercial Space Federation, an industry trade group representing SpaceX, Blue Origin, Rocket Lab, and others, praised the order for providing “regulatory relief to unleash the U.S. commercial space industry.”
Indeed, commercial players stand to benefit significantly under this new approach. Launch companies may see faster permitting and streamlined environmental reviews. State-backed spaceport operators, like Space Florida, could also gain from provisions that accelerate new site development. Establishing a mission authorization framework for novel space activities is equally impactful—startups like Varda Space Industries and Orbit Fab, which focus on in-space pharmaceutical manufacturing and orbital refueling, may gain an advantage under Commerce-led regulations.
However, not everyone supports the order. The Center for Biological Diversity, an environmental group that has challenged the FAA’s approval of SpaceX’s Starship program in Texas, called the order “reckless.”
“Bending the knee to powerful corporations by allowing federal agencies to ignore bedrock environmental laws is incredibly dangerous and puts all of us in harm’s way. This is clearly not in the public interest,” said senior attorney Jared Margolis.
For groups like the CBD, environmental reviews are not “overly complex,” as the order claims—they are often insufficient. In 2023, environmental organizations, including the CBD, alleged that the FAA’s environmental assessment of SpaceX’s Texas operations violated the National Environmental Policy Act.
SpaceX has separately criticized what it calls “superfluous” regulations and environmental analyses that have delayed its test campaigns.
Uncertainties remain. Legal challenges could slow the order’s implementation, and the yet-to-be-appointed new COMSTAC members will play a key role in shaping future space regulations.