Executive Order Aims to Accelerate Commercial Space Development Through Deregulation

President Trump issued Executive Order 14335, “Enabling Competition in the Commercial Space Industry” on Aug. 13, 2025. The EO frames commercial space as a national-competitiveness priority, seeking to “substantially increase” launch cadence and novel space activities by 2030 via streamlined licensing, permitting, and environmental reviews. The EO builds on the administration’s focus on commercial-centered space development and deregulation efforts, but couples them with specific agency deliverables and inter-agency coordination.

The Order addresses longstanding industry concerns over the FAA’s part 450 launch and reentry licensing rules, including a directive to the Secretary of Transportation, consulting with the chair of the Council on Environmental Quality, to “eliminate or expedite” environmental reviews not required by law. The EO directs the Secretary to modernize and streamline the rules for the launch and reentry of commercial vehicles; changes may include amending or rescinding parts of the regulation to relieve regulatory burdens on launch or reentry vehicles equipped with modern safety systems.

The EO directs the Secretary of Transportation to establish a position for an advisor who will counsel the Secretary on innovation and deregulation in the commercial space transport industry. The Secretary of Commerce is directed to elevate the Office of Space Commerce (OSC) directly into the Secretary’s office, which reflects longstanding industry preference for stronger OSC authority as well as a streamlined regulatory review process.

The EO confronts the longstanding and much-discussed question of novel space activity authorization for space activities that do not neatly fall under existing regulatory regimes (e.g., launch and reentry under the FAA, remote sensing under the National Oceanic and Atmospheric Administration (NOAA), or spectrum management under the Federal Communications Commission (FCC))—in other words, any number of innovative commercial activities that may unfold after launch. Within 150 days of the Order, the Secretary of Commerce is directed to propose a new process for individualized mission authorizations for activities that “require authorization and continuing supervision” from the member states under the Article VI of the Outer Space Treaty of 1967. Regulatory certainty and streamlining may promote American space superiority. The Order calls for inter-agency feedback on the authorization process, a definitive timeline for the grant and denial of authorizations, and clear and consistent requirements for applicants. However, additional congressional action may be necessary to authorize this new regulatory process, suggesting that full implementation may not occur for months or even years.

What the Executive Order Does

Sec. 3 — Launch and Reentry: Cutting Cycle Time and Revisiting Part 450

NEPA and Environmental Reviews. DOT is directed to “eliminate or expedite” environmental reviews and other obstacles to launch/reentry licenses, including deploying categorical exclusions (CE) where appropriate.

Why It Matters. CEs have been used for pre-approved low-impact categories, whereas environmental assessment (EA) (short analysis) or environmental impact statements (EIS) (full study) have been previously required for many FAA licenses. The EO mentions, without specifying, “certain parameters” within which a CE can be used. Repeated missions—same vehicle, same pad, identical trajectory, unchanged noise modeling, consistent wildlife monitoring, etc.—may qualify for CEs.

Part 450 Re-Evaluation. DOT must reassess 14 C.F.R. Part 450, which is the FAA regulation for launch and reentry licensing. Specifically, DOT must consider exemptions from regulatory requirements for vehicles with flight-termination or automated flight safety systems or with FAA airworthiness certificates. DOT will also broaden reliability criteria for reentry vehicles and remove requirements insufficiently tied to actual launch or reentry risk.

Deadline: 120-days (by Dec. 11, 2025) report to the assistant to the President for Economic Policy.

Sec. 4 — Spaceport Infrastructure

CZMA Compliance Review. Commerce, with the Department of Defense (DOD), DOT, and NASA, must evaluate states’ Coastal Zone Management Act (16 U.S.C. § 1458) (CZMA) compliance and whether non-compliance impedes spaceport development. Similar to provisions in Executive Order 14260, “Protecting American Energy from State Overreach,” agency heads are directed to notify the Department of Justice (DOJ) of state/local limits on Federal-land spaceports that may be inconsistent with federal law. This may lead to revocation of state CZMA approvals.

Deadline: Evaluation of relevant states’ compliance under CZMA due within 180 days (by Feb. 9, 2026).

Why It Matters. Spaceports often sit in coastal zones. The EO puts states on notice that their CZMA approvals may be vulnerable if DOJ can make a case that the state CZMA process is out of compliance with federal law. The EO anticipates federal action to prevent coastal-policy bottlenecks from stalling nationally significant infrastructure. The industry may expect heightened federal scrutiny of state processes.

Read a September 2025 GT Alert on space infrastructure financing.

Inter-Agency Memorandum of Understanding (MOU). DOD, DOT, and NASA must align spaceport development reviews, expedite environmental and administrative reviews, eliminate duplications, and preserve National Security Space Launch (NSSL) capacity via an interagency MOU and interagency coordination and coordination with CEQ.

Deadline: MOU to be executed within 180 days (by Feb. 9, 2026).

Why It Matters. Today’s multi-agency regulatory approval has been criticized as difficult to navigate. A unified playbook may allow parallel filings and shared templates for environmental, safety, and mission-assurance, etc., while protecting priority windows and pad access for national-security missions.

NEPA Categorical Exclusions. DOD, Interior, DOT, and NASA are directed to use every lawful lever to expedite authorizations, permits, approvals, and leases tied to spaceports. The Council on Environmental Quality (CEQ) will coordinate new NEPA CEs for spaceport actions that normally do not significantly affect the environment—letting agencies skip EAs/EISs when criteria are met.

Why It Matters. CEs may cut down environmental reviews by months. Commercial operators may decide to make CE-ready records with every operation.

Endangered Species Committee. For every spaceport project, DOD/DOT/NASA must consider seeking an Endangered Species Committee exemption under 16 U.S.C. § 1536(e)—a rarely used process that can allow a project to proceed even though the project may threaten the survival of an endangered species. ESA § 7(a)(2), if stringent findings are met (no reasonable alternatives, regional/national importance, etc.).

Why It Matters. The EO signals that national security and strategic equities may justify exceptional relief in difficult cases, such as those involving habitat-sensitive areas.

Sec. 5 — “Novel Space Activities”: A Federal Authorization Path

Article VI Authorizations. Commerce must propose a process for individualized authorizations for non-human-spaceflight activities that current frameworks do not clearly cover—setting clear requirements and definitive grant/deny timelines after inter-agency input. Human spaceflight is expressly excluded from this directive. 

Why It Matters. Space activities that fall under U.S. responsibility via OST Article VI but do not fit neatly under current DOT/FAA, FCC, and DOC/NOAA regimes (respectively launch/reentry, spectrum, and land remote sensing systems) are extensive. Examples might include on-orbit servicing/refueling/repair, in-space manufacturing, active debris removal, cislunar or lunar surface operations, etc. An individualized approval process under “Novel Space Activities” authorization may give regulatory certainty to startups and their investors working in these areas. However, additional congressional action may be necessary to authorize this new regulatory process,1 suggesting that full implementation may not occur for months or even years.

Deadline: Commerce to propose a process within 150 days (by Jan. 12, 2026).

Sec. 6 — Leadership and Accountability

DOT Innovation Advisor and AST Leadership. The EO establishes a new Innovation & Deregulation Advisor inside the Office of the Secretary of Transportation, tasked with accelerating commercial space transportation (launch/reentry) approvals and trimming unnecessary rules. The Order also directs FAA to appoint a noncareer Senior Executive as Associate Administrator for AST.

Deadline: Positions to be established within 60 days (by Jan. 12, 2026).

Why It Matters. New positions within the DOT are obvious new points of contact for industry for streamlining, deregulatory policies outlined in the EO.

Commerce: Elevates the Office of Space Commerce (OSC) into the Office of the Secretary, giving OSC cabinet-level proximity to drive interagency coordination and the new “novel activity” authorization lane.

Why It Matters. The elevation of OSC may promote the new “novel space activities” authorization process and allow OSC to better drive interagency coordination with FAA, NOAA, FCC, DOD, NASA, and the White House.

Agencies Affected by the EO

1 Existing statutes authorize the DOT to regulate launch, reentry, and spaceports, FCC to regulate the use of radio frequencies in satellite communications, and DOC to regulate land remote sensing systems. There is currently no statutory authority for any agency to regulate on-orbit space activities that are outside of existing DOT, FCC, and DOC authority.