Photo: Bill Ingalls, NASA The United States is taking another step toward expanding its commercial space industry, with the Federal Aviation Administration unveiling plans to simplify the licensing process for rocket launches, spacecraft reentries, and spaceport operations.
Announced by U.S. Transportation Secretary Sean P. Duffy, the initiative is designed to reduce regulatory burdens that officials say are slowing innovation and increasing costs for companies operating in the rapidly growing space sector.
The proposal follows President Donald Trump's executive order aimed at boosting competition in the commercial space industry and aligns with a long-standing Congressional directive to modernize the licensing process.
Under the proposed rule, the FAA would gain greater flexibility to waive certain environmental review requirements for commercial space licenses and permits, provided public safety, national security, property, and U.S. foreign policy interests are not affected.
Federal officials say the changes are needed to keep pace with an industry that has experienced unprecedented growth. Over the past five years, the FAA has authorized more commercial space operations than it did during the previous three decades combined, including a record 204 operations in fiscal year 2025.
That number is expected to rise significantly. According to FAA forecasts, commercial space operations could increase from 214 this year to as many as 507 annually by 2036, totaling more than 4,200 launches, reentries, and related activities over the next decade.
"America won the first Space Race, and we can do it again, but only if we get government red tape out of the way," Duffy said in announcing the initiative.
FAA Administrator Bryan Bedford: "Commercial space activity is surging, and we must do everything safely possible to support this vital sector," Bedford said. "We will not keep pace with this rapid growth unless we streamline, modernize, and strengthen our regulatory approach."
The proposal would allow the FAA to waive requirements tied to 13 federal laws in certain cases, including provisions related to the National Environmental Policy Act, the Endangered Species Act, the Clean Water Act, and the Clean Air Act.
The agency argues that companies currently face lengthy and overlapping reviews involving multiple federal agencies, creating delays for near-term launch operations.
The proposed rule will be open for public comment for 30 days before the FAA considers issuing a final version.