Encouraging Competitiveness in the Business Sector of Aerospace Industry
The United States government has taken a significant step towards enhancing American greatness in space, with the 2025 Executive Order on Enhancing American Greatness in Space aiming to streamline regulations and foster a competitive commercial space industry.
The key initiatives and regulatory reforms outlined in the order focus on reducing and expediting environmental reviews, reviewing and eliminating outdated regulations, and aligning and expediting review processes across multiple federal agencies.
One of the key measures is the Secretary of Defense, the Secretary of Transportation, and the Administrator of NASA executing a memorandum of understanding to align review processes for spaceport development across agencies within 180 days of the order. This move is expected to reduce duplication and accelerate commercial space operations.
The Secretary of Transportation is also tasked with establishing a position in the Office of the Secretary with the responsibility of advising on fostering innovation and deregulation in the commercial space transportation industry.
The Secretary of Commerce is to elevate the Office of Space Commerce into the Office of the Secretary, and within 150 days of the order, propose a process for individualized mission authorizations for activities not clearly or straightforwardly governed by existing regulatory frameworks.
To expedite environmental and administrative reviews for authorizations, permits, approvals, real property leases, and any other activity relevant to spaceport infrastructure development, the Secretary of Defense, the Secretary of the Interior, the Secretary of Transportation, and the Administrator of NASA are to do so within their respective remits.
The order also prioritises deregulation, particularly around environmental constraints, to speed commercial space launches and infrastructure expansion, supporting U.S. economic growth and national security interests in space while encouraging technological innovation and competitiveness.
However, these reforms have raised environmental concerns due to reduced oversight. The Secretary of Transportation, in consultation with the Chair of the Council on Environmental Quality, is to eliminate or expedite environmental reviews for launch and reentry licenses and permits.
The Chair of the Council on Environmental Quality is to coordinate with relevant executive departments and agencies on the establishment of new categorical exclusions under NEPA for actions related to spaceport development that normally do not have a significant effect on the quality of the human environment.
Agencies are to rely on any sufficient basis to do so as each such agency determines when establishing these categorical exclusions. The Secretary of Transportation, in consultation with the Chair of the Council on Environmental Quality, is also to report to the Assistant to the President for Economic Policy a description of the actions taken or to be taken regarding regulatory barriers to commercial launch and reentry within 120 days.
The Administration aims to ensure that new space-based industries, space exploration capabilities, and cutting-edge defense systems are developed in America. The order is not intended to create any right or benefit, substantive or procedural, enforceable at law or in equity.
The costs for publication of the order shall be borne by the Department of Transportation. The Secretary of Commerce, in consultation with the Secretary of Defense, the Secretary of Transportation, and the Administrator of NASA, is to conduct an evaluation of relevant States' compliance under the Coastal Zone Management Act within 180 days of the date of this order.
The functions assigned to the Secretary of Transportation in sections 1 through 5 of the order shall be carried out by the Administrator of the Federal Aviation Administration under the direction of the Secretary of Transportation.
Overall, the order prioritises deregulation and fostering innovation to support the growth of the U.S. commercial space industry, with the aim of increasing commercial space launch cadence and novel space activities by 2030.
- The regulatory reforms in the 2025 Executive Order on Enhancing American Greatness in Space aim to utilize science and technology to streamline environmental reviews, reduce outdated regulations, and foster innovation in the career paths of those working in the commercial space industry.
- In alignment with the 2025 Executive Order on Enhancing American Greatness in Space, the Secretary of Transportation is tasked with establishing a position to advise on deregulation and fostering innovation in the commercial space transportation industry, with a focus on technology and the environmental aspects of spaceport development.
