Trump Loosens Rules for Commercial Spaceflights – SpaceX and Other Firms Could Get Faster Approvals

President Donald Trump on Wednesday signed an executive order aimed at significantly streamlining and accelerating processes in the U.S. commercial space industry. The directive gives federal agencies a clear mandate – speed up approvals for rocket launches and atmospheric reentries, and remove unnecessary obstacles holding back this fast-growing sector. The move could directly benefit companies such as Elon Musk’s SpaceX, as well as other players including Blue Origin, United Launch Alliance, and Rocket Lab.

The end of “outdated and unnecessary” rules According to the White House, the Secretary of Transportation is tasked with reviewing federal requirements and eliminating “outdated, redundant, or overly restrictive rules” for launch and reentry vehicles. The spotlight is also on Part 450 of the Federal Aviation Administration (FAA) regulations governing commercial launch licensing. While it was originally introduced during Trump’s first term to simplify the process, many in the industry say it has become unnecessarily complex and rigid.

Why this matters for SpaceX The order could have an immediate impact on SpaceX, which is preparing further test flights of its Starship super rocket. The company has long pointed out that securing a launch license often takes longer than building the rocket hardware itself. In September 2024, SpaceX criticized the current implementation of the rules, saying: “We still live in a reality where government paperwork takes longer than engineering the hardware.”

Political appointments and boosting space commerce The directive also proposes that the head of the FAA Office of Commercial Space Transportation be a political appointee – giving the White House direct influence over licensing priorities and strategy. The Office of Space Commerce, currently under NOAA, will be moved directly under Commerce Secretary Howard Lutnick, a change intended to raise the political profile of commercial space issues and improve interagency coordination.

Accelerating environmental reviews The Department of Transportation is instructed to work with the Council on Environmental Quality to shorten environmental assessments related to rocket launches and reentries. This part of the order is already expected to face pushback from environmental groups, which warn of risks to protected areas in coastal states such as Florida, California, and Texas.

New positions and review of state-level barriers The DOT will establish a new role for innovation and deregulation advisory, and the FAA will appoint a “Deputy Administrator for Commercial Space Transportation” to lead reform efforts. Federal agencies will also examine whether some states are blocking spaceport construction under the Coastal Zone Management Act and align procedures to prevent overlapping rules.

A simpler process for new space missions Finally, the order calls for the creation of a “streamlined process for authorizing new space activities” – missions not covered by existing regulatory frameworks. The aim is to ensure innovative projects aren’t delayed for years simply because there’s no pre-defined approval pathway.

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