Commercial space deregulation accelerates: Four federal agencies move at once

Key takeaways

• Four agencies: The U.S. Department of Commerce’s Office of Space Commerce (OSC), the Federal Communications Commission (FCC or Commission), the Federal Aviation Administration (FAA), and the U.S. Department of the Interior’s Minerals Management Administration (MMA) are simultaneously advancing rulemakings and licensing reforms tracing back to Executive Order 14335 and Executive Order 14369.
• Broad vs. narrow scope: FAA’s proposed rule and MMA’s Outer Continental Shelf request reach beyond the National Environmental Policy Act (NEPA) and Coastal Zone Management Act (CZMA) into a broad range of environmental laws, while OSC and the FCC are staying focused on national security, safety, and licensing modernization.
• Modernized satellite licensing architecture: The FCC replaced Part 25 with Part 100, separating corporate disclosures from technical filings, shortening public notice to 15 days, and adding a compliance presumption for standard filings.
• Congressional pushback on FCC authority: House Science, Space, and Technology Committee leadership has formally disputed whether the FCC has statutory authority to regulate orbital debris and space safety at all, a live jurisdictional question for Part 100's durability.
• Legal exposure and defensive compliance: FAA's broad waiver of environmental statutes, including National Historic Preservation Act (NHPA) Section 106 consultation, creates an Administative Procedure Act (APA) litigation risk; launch providers should preserve independent environmental records, especially given the history of challenging similar reviews.
• New pathways for novel missions: OSC’s Space Commerce Certification program and the FCC's new Part 100 pathway now give novel-mission companies two opt-in routes to faster approval, with OSC’s call for interest coming soon.
• Jurisdictional boundaries of commerce certifications: Securing an OSC certification does not supplant independent spectrum licensing obligations governed exclusively by the FCC.
• Critical comment deadlines and strategic input: Comment windows are open now across the FAA, FCC, and MMA proceedings, giving stakeholders an immediate opportunity to shape the final rules.

A coordinated push is underway across the federal government to deregulate U.S. commercial space and satellite activity. It started with Executive Order 14335, “Enabling Competition in the Commercial Space Industry,” which President Trump signed on August 13, 2025, directing federal agencies to streamline commercial space license and permit approvals and substantially increase launch cadence and novel space activities by 2030. In the year since, FAA, OSC, FCC, and MMA (formerly the Bureau of Ocean Energy Management) have each taken or proposed action in response. This alert walks through what each agency has done and what it means in practice for launch providers, satellite operators, spaceport developers, and companies pursuing novel space activities.

Executive Order 14335: Enabling competition in the commercial space industry

EO 14335 sets a clear policy goal: strengthen American leadership in space by opening up the launch marketplace and sharply increasing commercial launch cadence and novel space activities by 2030. It does that through four main directives. Section 3 tells the secretary of transportation to cut back or speed up environmental review for launch and reentry licenses and permits—including using waiver authority under 51 U.S.C. § 50905(b)(2)(C) and revisiting, revising, or rolling back FAA’s Part 450 regulations, with NEPA (including categorical exclusions) and CZMA specifically in the crosshairs. Section 4 directs the secretary of commerce to look at whether state CZMA compliance is holding up spaceport infrastructure, negotiate interagency agreements that align spaceport development review, speed up environmental and administrative review for spaceport projects, and consider Endangered Species Act Section 7 exemptions for those projects. Section 5 gives the secretary of commerce 150 days to propose individualized “mission authorizations” for novel space activities that fall under Article VI of the Outer Space Treaty but are not clearly covered by any existing framework. And Section 6 creates a new Department of Transportation advisory role focused on commercial space deregulation—a senior FAA associate administrator for commercial space transportation—and elevates OSC within the Office of the Secretary of Commerce. Everything described below traces back to this one order.

Commerce/OSC: Space commerce certification moves to its next stage

On July 23, 2026, the OSC moved forward with its Space Commerce Certification (SCC) program, a voluntary, fee-free certification track for novel activities like in-space manufacturing, orbital computing, satellite servicing, lunar operations, and space resource utilization that do not fit neatly into existing FAA, FCC, or Commercial Remote Sensing Regulatory Affairs (CRSRA) licensing categories. OSC has confirmed it will now publish a “call for interest” in the Federal Register, opening the door for companies to submit their first applications. The secretary of commerce (or a designee) will act as certifying authority, consulting with the secretaries of defense and state, the administrators of FAA and NASA, and the FCC chairman.

The review itself stays narrow: national security, foreign policy and international obligations, and safety of space operations—not NEPA or other environmental statutes. Operationally, the agency aims to complete certifications within a standard 120-day window, subject to a 60-day extension mechanism if interagency conflicts arise. Denials are strictly restricted to unmitigable national security, safety, or compliance risks, and applicants retain formal appeal rights. While a successful certification may serve as persuasive grounds for other regulators (such as the FCC) to grant rule waivers, it does not act as a surrogate for statutory requirements like FCC spectrum allocation—so industry participants launching pioneer orbital operations must coordinate their regulatory roadmaps accordingly.

Congressional lawmakers have raised some concern regarding the process. OSC Director Taylor Jordan was asked at a July 15 hearing to show the process will weigh national security and safety alongside speed. Ranking Member Zoe Lofgren also questioned whether OSC can actually deliver; the administration's proposed FY2027 budget cuts the office's funding by roughly 80% from FY2026 levels, just as OSC is opening the certification pathway to applicants.

FCC: A new Part 100 built like an assembly line

The FCC finalized a sweeping overhaul of its space licensing framework by replacing 47 C.F.R. Part 25 with a new Part 100. Alongside its Space Modernization for the 21st Century Report and Order, the Commission issued a Further Notice of Proposed Rulemaking (FNPRM), seeking comment on additional reforms to further streamline the licensing of space and earth stations under the Commission's new Part 100 framework.

The transition to Part 100 represents a fundamental shift in how the Commission processes space and earth station filings:

• Reusable disclosure infrastructure: Corporate and legal qualifications are now isolated into a primary Form 312 profile that can be maintained on record, allowing operators to rapidly execute subsequent payload or ground deployments by attaching standalone technical schedules (Schedules O, F, or B).[1]
• Accelerated administrative timelines: The Commission eliminated multitier notice frameworks in favor of a single 15-day public comment period across standard applications, while simultaneously absorbing small-satellite procedures into the primary Part 100 framework.
• Standardized review standards: Rule-compliant filings receive an automatic presumption of public interest alignment.[2] Full agency review is confined to seven specific risk triggers (such as foreign ownership or waiver requests), and any review extending past 60 days post-comment period requires formal written justification from the agency. See id. at ¶ 61.

In parallel with these procedural updates, the Commission extended geostationary (GSO) license terms to 20 years (See id. at ¶ 84.) and removed mandatory performance bonds for non-geostationary (NGSO) applicants operating outside processing rounds. See id. at ¶¶ 102–108.

The FNPRM proposes further refinements to application procedures, expanded use of experimental authorizations, additional licensing flexibilities for innovative spacecraft, reforms to earth station licensing, and changes to satellite spectrum leasing. The Commission projects net producer surplus gains of at least $42 million and specifically calls out OSC’s SCC, saying it will fold those certifications into Part 100 licenses wherever it can.

The order has not escaped congressional scrutiny. The leadership of the House Science, Space, and Technology Committee has questioned the order's scope, arguing the FCC was never given comparable statutory authority over space safety and orbital debris mitigation; letters sent by the committee have remained unanswered. Commenters have also flagged concerns regarding compressed comment windows and opposition to the streamlining itself.

FAA: A sweeping waiver of environmental review

Carrying out Section 3 of EO 14335, on July 30, 2026, the FAA proposed to waive 13 federal environmental and related statutes across the board for commercial space launch and reentry licenses and permits—covering launch site licenses (Part 420), reentry site licenses (Part 433), experimental permits (Part 437), and vehicle licenses (Part 450). The FAA is relying on the secretary of transportation’s waiver authority under 51 U.S.C. § 50905(b)(2)(C) to waive requirements that are not necessary to protect public health and safety, property, or national security and foreign policy interests. The agency has set an expedited 30-day window for public comments, closing on August 31, 2026.

The waiver would extend beyond the FAA's own licenses to related federal actions—including airspace closures, airport layout plan approvals, and federal land leases—so that agencies cannot simply shift NEPA obligations elsewhere. Mechanically, the FAA would add a new general waiver provision at 14 CFR § 400.3, with conforming changes to §§ 420.15, 433.7, 437.21, and 450.47. To complement these statutory waivers, the agency is also expanding its reliance on categorical exclusions under FAA Order 1050.1G.

Section 106 of the NHPA is one of the 13 laws the FAA is proposing to waive. Section 106 is currently the mechanism that requires FAA to identify historic properties before issuing a license and to consult with affected tribes on how to avoid or mitigate harm. Waiving it would eliminate that project-specific, legally enforceable step for launch site licenses, reentry site licenses, experimental permits, and vehicle licenses, and for related federal actions like airspace closures and federal land leases, as well.[3]

Reaction has been swift. Environmental groups have called the waiver an "obscene giveaway" to launch providers and are signaling litigation once a final rule issues.

This regulatory relief is strictly confined to environmental compliance. Operators remain fully bound by statutory safety reviews, financial responsibility requirements, orbital debris assessments, and payload approvals under 14 CFR Chapter III. Furthermore, because federal statutory waivers do not alter state environmental laws or non-FAA property rights—and face immediate APA litigation exposure—operators must maintain complete environmental baseline data to ensure continuity.[4]

MMA: Could offshore oil rigs become space launch pads?

MMA issued a request for information (RFI) on July 8, 2026, pursuant to EO 14369, “Ensuring American Space Superiority,” seeking input on the potential use of the Outer Continental Shelf (OCS) for commercial offshore space launch and reentry activities, including whether existing oil and gas infrastructure (e.g., mobile offshore drilling units or fixed platforms) could host space launch platforms and reentry or recovery sites. The RFI casts a wide net, seeking information regarding technical and siting considerations; environmental impacts and mitigation; legal authority; how offshore launch activity would interact with existing uses of the OCS (including oil and gas, commercial fisheries, navigation, military activity, and cultural resources); international considerations (including applicable treaties, foreign regulatory models, and international maritime safety standards); what consultation and environmental review would be appropriate;[5] and how best to structure stakeholder engagement.

Responses to the RFI to date suggest that there are potential public benefits to the proposal, including repurposing existing offshore infrastructure, expanding U.S. launch capacity, supporting national security, and creating new economic opportunities for ports and coastal communities, provided projects are carefully sited and managed. Concerns have been raised regarding Jones Act constraints and an additional use adversely impacting existing maritime uses. On the other hand, the Center for Biological Diversity has voiced its objections, arguing that regulators should be protecting public waters rather than opening them to another industry's buildout.

Latent or potential exposure and challenges

• Courts reviewing the final rule are likely to question whether FAA adequately justified concluding that NHPA Section 106 compliance is "not necessary" to protect health, safety, property, national security, or foreign policy interests.
• If FAA waives NHPA and other statutes alongside expanding categorical exclusions, it is likely to raise jurisdictional exposure.
• If the congressional dispute over the FCC's authority to regulate orbital debris and safety escalates into legislation, the new debris/safety framework could be narrowed or vacated after the fact.
• OSC is opening its certification pathway to applicants against a steep proposed budget cut. The certification framework's 120-day decision targets are, moreover, only commitments. A resource-constrained office is a real risk to timeline reliability, particularly for early applicants in the first cohort.
• Companies making long-term investment or compliance decisions should recognize that each initiative rests on a different, and differently durable, legal foundation.

Recommended next steps

• Submit formal comments before the August 31, 2026, deadline regarding the FAA’s environmental waiver proposal, as well as active dockets for the FCC’s Part 100 FNPRM and MMA’s offshore launch RFI.
• Launch providers and facility developers should continue gathering robust environmental baseline data to guard against potential operational stays stemming from APA legal challenges to the FAA's waiver framework.
• Satellite and earth station entities should prepare foundational Form 312 corporate disclosures immediately to ensure rapid deployment of technical modules once Part 100 implementation begins.
• Novel mission developers should sequence OSC certification filings simultaneously with FCC spectrum applications to leverage OSC findings during FCC public interest reviews.
• For FAA-licensed activity, monitor whether tribal governments or organizations file comments or signal intent to sue once the waiver rule is finalized, and build litigation contingency time into project schedules accordingly.
• OSC's certification program is moving forward against the budget cut, and the FCC's Part 100 faces an open congressional challenge to its authority over debris and safety rules. Build schedule flexibility into any filing strategy that depends on either pathway.

Endnotes