Executive Actions to Promote Commercial Space Activities

The burgeoning commercial space sector presents an unprecedented opportunity for the United States, but maintaining leadership requires astute policy choices. SpaceX’s current dominance is a testament to American innovation, but competitors are emerging, and regulatory hurdles threaten to stifle future growth. A new presidential administration should prioritize streamlining regulations and fostering a more permissive environment for commercial space activities. Five key executive orders could lay the foundation for this much-needed reform.

The first order of business should be restructuring the Office of Commercial Space Transportation (OCST). Currently nestled within the Federal Aviation Administration (FAA), the OCST is hampered by bureaucratic inertia, incentivizing staff expansion rather than regulatory simplification. An executive order should return the OCST to the Secretary of Transportation, as originally mandated by statute. This move would allow for a comprehensive overhaul of launch regulations, shifting from a prescriptive, staff-intensive approach to a performance-based system. This includes moving away from requiring a Finding of No Significant Impact for every launch and launch site license, potentially through a categorical exclusion similar to aircraft, or a “shall issue” system where licenses are automatically granted unless the government identifies a specific reason for denial. The experimental launch permit regime should also be revitalized to allow for multiple launches under a single approval, reducing the administrative burden on innovative ventures like Starship.

Second, the outdated practice of requiring licenses for space-based imagery should be abolished. The free flow of information is crucial for a thriving commercial space sector, and the current licensing requirements under NOAA are an unnecessary impediment. An executive order directing NOAA to immediately approve all pending and future applications for Earth observation licensing would send a strong signal of support for open access to space-based data. Follow-up legislation would solidify this change and prevent future administrations from easily reinstating restrictive licensing practices. This aligns with the long-standing U.S. policy of promoting open societies and the principle that Earth observation is not a hostile act. Maintaining access to high-quality imagery is ensured by fostering a competitive commercial imaging market, potentially surpassing government capabilities.

Third, the International Traffic in Arms Regulations (ITAR) place a significant burden on the U.S. space industry, hindering free speech and the exchange of technical information. The definition of “technical assistance” under ITAR should be narrowed through an executive order to prevent it from being applied to public discussions of space capabilities. This is not about compromising national security or protecting classified information, which are handled through separate mechanisms like secrecy agreements and security clearances. It is about ensuring that U.S. companies and engineers can freely discuss their work without fear of regulatory repercussions. A revised definition should, at a minimum, require a financial transaction to be considered “technical assistance,” protecting legitimate business interactions while preserving the right to free speech. Subsequent legislation should further codify these changes, ensuring clarity and predictability for the industry.

Fourth, the Federal Communications Commission (FCC) has overstepped its mandate by linking radio transmitter licenses to compliance with regulations unrelated to spectrum management. An executive order should limit the FCC’s authority to its core function of managing the radio spectrum. The FCC should not be involved in regulating space debris or other aspects of commercial space operations, as these fall outside its purview. With the Supreme Court’s rejection of Chevron deference, it’s unlikely these overreaching regulations can be reinstated without explicit congressional authorization. This will create a more focused regulatory environment for space companies, allowing them to innovate without navigating extraneous bureaucratic hurdles.

Finally, the U.S. government needs a streamlined mechanism for fulfilling its obligations under the Outer Space Treaty to authorize and supervise commercial space activities. Rather than establishing a complex regulatory regime, the Department of Commerce should be designated, via executive order, as the central point of contact for registering commercial space activities. This registry would primarily focus on preventing conflicts between proposed activities, such as overlapping operations on the lunar surface, and ensuring compliance with treaty obligations. It would also provide the initial foundation for recognizing and protecting commercial property rights in the burgeoning economy of the solar system. This registration process would not require government permission, but rather serves as a notification and coordination system. The Department of Transportation would then cross-check this registry during the launch licensing process, ensuring all activities are properly documented. “Continuing supervision” would be maintained by requiring updates to the registry as activities evolve, streamlining regulatory oversight without imposing undue burdens on commercial operators.

These five executive orders offer a path towards a more vibrant and competitive American commercial space sector. They would reduce regulatory burdens, encourage innovation, and provide a clear and predictable legal framework for space-related businesses. Importantly, these changes would have minimal impact on the federal budget while maximizing the potential for economic growth and technological advancement in space. By fostering a more permissive and supportive environment, the U.S. can unlock the vast potential of the commercial space industry and maintain its leadership position in this rapidly evolving domain.