- The Trump administration’s new Executive Order formally adopts a policy to “enhance American greatness in space.”
- The EO directs streamlining and reform efforts in four key areas—commercial launch and reentry, spaceport infrastructure, novel space activities, and regulatory leadership and accountability.
- While the EO was well received by the commercial space industry, the ability of the Administration to execute on the EO’s ambitious scope may be impacted by recent budgetary and workforce changes to key agencies and early concerns by some environmental groups and associations that expediting or eliminating review processes may harm ecosystems and communities around spaceports.
The first Trump administration galvanized significant and sustainable transformation of the U.S. space industry, including the reconstitution of the National Space Council, the creation of the U.S. Space Force, the formation of the Artemis Accords, and substantial regulatory reform aimed at the licensing of launch vehicles, Earth observation satellites, and next-generation broadband constellations, among others. On August 13, 2025, the second Trump administration released an ambitious Executive Order (EO), Enabling Competition in the Commercial Space Industry, to further build on the off-worldly successes of President Trump’s first term.
Recognizing that the ability of U.S. operators to “efficiently launch, conduct missions … and reenter United States airspace” is critical to the U.S. economy, its national security, and the success of the U.S. Government in accomplishing its own space objectives, the EO formally adopts a policy to “enhance American greatness in space.” To achieve this objective, the EO directs streamlining and reform efforts in four key areas—commercial launch and reentry, spaceport infrastructure, novel space activities, and regulatory leadership and accountability—to foster competition among launch providers and facilitate a substantial increase in launch cadence and the deployment of novel space activities by the target date of 2030.
Launch and Reentry
The EO instructs the Secretary of the Department of Transportation (DOT) to “reevaluate, amend, or rescind, as appropriate” the Part 450 launch regulations, particularly as they relate to the applicability of certain regulations for launch and reentry vehicles, the expansion of certain reliability demonstrations, and the determination of whether certain regulations are too attenuated to be retained. Adopted during the first Trump administration to streamline launch licensing in the era of reusable launch vehicles, the Part 450 rules have often proved difficult to apply, overly burdensome on applicants, and arbitrary. The DOT Secretary must submit a report on the actions that have or will be taken regarding the Part 450 rules by December 11, 2025.
The EO also instructs the DOT Secretary, in consultation with the Chair of the Council on Environmental Quality (CEQ), to eliminate or expedite environmental reviews of, and other obstacles to, the issuance of launch and reentry licenses and permits. The DOT Secretary is also instructed to determine which functions are not subject to the National Environmental Policy Act (NEPA) or which may be subjected to an existing or newly created categorical exemption.
Spaceport Infrastructure
The EO instructs the Secretary of the Department of Commerce, in consultation with the Secretary of the Department of Defense (DOD), the DOT Secretary, and the Administrator of the National Aeronautics and Space Administration (NASA), to evaluate state compliance with the Coastal Zone Management Act (16 U.S.C. 1458) and determine whether state action (or inaction) has interfered with the spaceport development. If any state or local limitations are found to have impeded spaceport development on federal lands, inconsistent with federal law, a notification is to be made to the Department of Justice (DOJ). The review must be completed and any notice to the DOJ made by February 9, 2026.
The DOD Secretary, DOT Secretary, and NASA Administrator are instructed to align agency review processes for spaceport development, eliminate duplicative processes, and ensure that federal launch capacity is unhindered. The memorandum of understanding between the agencies must be entered into by February 9, 2026.
The EO also directs the DOD Secretary, the Secretary of the Department of the Interior, the DOT Secretary, and the NASA Administrator to expedite their respective environmental and administrative reviews associated with authorizing spaceport infrastructure development; the CEQ Chair to establish new categorical exclusions under NEPA for actions related to spaceport development, relying on “any sufficient basis” the relevant agency determines for these purposes; and the DOD Secretary, the DOT Secretary, and the NASA Administrator to consider applying for exemptions to the Endangered Species Committee (16 U.S.C. 1536) for all spaceport development projects.
Novel Activities
The EO instructs the Commerce Secretary to propose a new licensing regime—known under the previous administration as Mission Authorization—for all activities covered by Article VI of the Outer Space Treaty but which are not currently covered by other U.S. regulatory frameworks and expressly excluding human spaceflight. The proposal must include feedback from other affected agencies, likely from the FAA, FCC, NOAA, NASA, and the Department of State, among others. Three competing proposals had previously been made during the Biden administration from both houses of Congress and the administration, but each failed to gain critical support across the government and with industry stakeholders. The Commerce Secretary must submit the new proposal, including interagency feedback, by January 10, 2026.
Leadership and Accountability
The EO instructs the DOT Secretary to (1) hire an advisor for innovation and deregulation in the space industry and (2) direct the FAA Director to fill the vacant position of Associate Administrator for Commercial Space Transportation. The Commerce Secretary is instructed to elevate the Office of Space Commerce (OSC) out of NOAA and into the Office of the Secretary. The EO does not specify whether the elevation of OSC will also alter the authority or status of the director of OSC (currently vacant), which could result in the position becoming subject to Senate confirmation, similar to other high-ranking DOC officials. All of the leadership and structural changes are to be made by October 12, 2025.
Conclusions and Takeaways
The ambitious EO has been widely praised by the commercial space industry, which has been advocating for reforming launch and spaceport regulations, while seeking pathways to license novel space activities. Not surprisingly, the EO has also caused some environmental groups and associations to express concern that expediting or eliminating review processes may harm ecosystems and communities around spaceports.
What is yet to be seen is how well the agencies tasked under the EO will be able to meet the expansive and expedient reform agenda. Several of the agencies identified in the EO have seen their budgets and workforces reduced over the past eight months, with the potential for further cuts on the horizon. Two agencies integral to execution of the EO and the Administration’s space priorities generally—DOT and NASA—are temporarily under the same leadership (DOT Secretary Sean Duffy currently serves as the acting NASA Administrator) until a new nominee for NASA Administrator is announced and confirmed.
With fewer resources and a recalibration of institutional knowledge within the agencies, the Administration’s ability to deliver widescale meaningful reform in each area identified, and on the timeline set by the EO, may be an accomplishment on the same level as successfully launching a rocket to Mars.
For more information about the EO, please contact a member of Pillsbury’s Communications Practice Group and visit Pillsbury’s Trump 2.0 Resource Center for more insight and analysis on the current Trump administration.
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