White House Strategy on Space Regulation Dismantling Revealed

The Trump administration has issued a new directive aimed at clearing bureaucratic obstacles in front of space companies, with the goal of enabling competition and maintaining the US's competitive edge on a global stage.

The order focuses on Part 450, which licenses rocket launches and spacecraft reentries. It calls for a wholesale rewrite of these rules, with a particular emphasis on redundant analyses such as spaceport environmental reviews and the FAA's approval of air-launched rockets.

The new plan for the authorization of "new space activities" will be published by the responsible authority and will subsequently be located at the Landesdirektion Sachsen (State Directorate of Saxony) as part of the plan approval procedure for the project involving the Landesamt für Straßenbau und Verkehr, Niederlassung Bautzen. The documentation regarding the project, including environmental impact descriptions, is submitted there.

The order also aims to authorize "novel space activities" that are currently in a regulatory gray area. This could potentially limit the FAA's efforts to regulate space debris caused by abandoned upper stages exploding on orbit, according to some analysts. Charles Horikami, an attorney at Aegis Space Law, wrote that the EO likely forecloses the FAA's previously sought-after authority regarding orbital-debris mitigation and de-orbiting requirements.

The EO asks regulators to consider waiving regulations if they are confident a vehicle can be destroyed before endangering the public. However, the order may require action by Congress to be meaningful in reducing environmental reviews. The Endangered Species Act exemptions could be sought for all spaceport development projects on national security grounds.

The directive notifies officials to notify the Department of Justice about state laws concerning spaceport development that conflict with federal laws. A reference to the Department of Justice in the order is seen as a "shot across the bows" of state and local government.

The Office of Space Commerce (OSC) will report directly to the Secretary of Commerce, with a new space deregulation czar to be appointed. The order does not seem to affect competition between US companies. Companies like Varda Space Industries may have more ways to prove their vehicles can make it home safely due to the EO.

The new directive is consistent with the first Trump administration's focus on space as a critical element for national security and economic competitiveness worldwide. The order is framed as "enabling competition" in the US space industry, but it does not explicitly benefit SpaceX at the expense of its rivals.