President Donald Trump on August 13, 2025 signed an executive order aimed at streamlining federal review of commercial space launches and establishing a new framework for novel space missions. The order, titled Enabling Competition in the Commercial Space Industry, takes aim at lengthy space launch and re-entry licensing timelines, as well as at environmental reviews that delay or deter spaceport development. The order also calls for the development of a regulatory framework for novel space missions, presumably to be overseen by the US Department of Commerce’s Office of Space Commerce.
The order directs the secretary of the US Department of Transportation (DOT) to use “all available authorities to eliminate or expedite the DOT’s environmental reviews for, and other obstacles to the granting of, launch and reentry licenses and permits.” The order specifically requires review of the commercial space launch regulations, directing consideration of whether streamlined approaches can be found for flight systems with flight termination or automated flight safety systems and vehicles that hold valid Federal Aviation Administration (FAA) airworthiness certificates.
The secretary of Transportation is required to report on its progress within 120 days of the order. The DOT is also directed to work with the US Department of Defense (DOD) and National Aeronautics and Space Administration (NASA) to align review processes for spaceport development across agencies and to memorialize its efforts in an interagency Memorandum of Understanding within 180 days.
The order also directs the DOD, DOT, the US Department of the Interior, and NASA to “use all available authorities to expedite their respective environmental and administrative reviews for . . . spaceport infrastructure development,” including potential categorical exclusions under National Environmental Policy Act (NEPA) for actions that do not have a “significant effect on the quality of the human environment.” Federal officials are also directed to consider whether national security imperatives merit exceptions to endangered species laws.
The DOD, NASA, and the DOT are also directed to work together to consider whether state approvals under the Coastal Zone Management Act should be revoked and whether past state and local actions with respect to local spaceport developments may be “inconsistent with Federal law.” The order, therefore, seeks not only to alleviate federal regulatory burdens, but potentially those imposed by state and local authorities as well.
While much of the press about the executive order has focused on the potential changes to space launch licensing and related environmental reviews, the order also makes strides in establishing a mission authorization regime for space activities that do not fit comfortably within today’s existing regulatory structure. The order requires the secretary of the US Department of Commerce (DOC) to move the Office of Space Commerce—currently under the National Oceanic and Atmospheric Administration—into the Office of the Secretary.
Moreover, the order requires the DOC secretary to propose a process for “individualized mission authorizations for activities that are . . . not clearly or straightforwardly governed by existing regulatory frameworks.” Commercial space actors have long sought a mission authorization regime to fill the gaps that exist in today’s regulatory framework. A draft framework under the Biden administration proposed to split this authority between the FAA and the DOC, while a number of bills in the US Congress have put forward alternatives, including placing primary responsibility in the hands of the DOC. None of the prior alternatives have made it past the proposal stage.
While today’s large launch providers are the most visible and touted beneficiaries of more streamlined regulations, faster review timeframes, and the potential removal of certain environmental reviews, smaller launch companies and spaceport authorities also stand to benefit from a reworked licensing framework. Lower administrative burdens mean lower costs and potentially lower regulatory uncertainty for new space companies looking to make their mark in space launch, as well as those companies that rely on efficient and affordable access to orbit.
Meanwhile, express rules for novel mission authorizations would also lower the regulatory uncertainty for companies looking to shake up how—and what—business is done in space. With the process also administered through the Office of Space Commerce—long viewed as more industry savvy and friendly than their counterparts at the DOT or NASA—the mission authorization directive is being well received by the marketplace.
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Associate Connor Haffey is an author on this LawFlash
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