FAA Proposes Rule to Waive Environmental Reviews for Space Launch Licenses
Proposed Change Would Skip Parts of 13 Federal Laws; 30-Day Comment Period Opens Before Any Final Action
The Federal Aviation Administration has proposed a rule that would let the agency waive parts of 13 federal laws, including environmental and historic preservation statutes, when reviewing certain commercial space launch and reentry license applications.
“America won the first Space Race, and we can do it again. But only if we get government red tape out of the way.”
Sean Duffy, DOT
The proposal comes from the U.S. Department of Transportation, which oversees the FAA, and was announced by Transportation Secretary Sean P. Duffy. It builds on President Donald Trump’s August 2025 executive order titled “Enabling Competition in the Commercial Space Industry” and on a congressional mandate, dating to earlier space commerce law, that directs regulators to simplify and speed up commercial space licensing.
The rule is a proposal, not a final action. The FAA has opened a 30-day public comment period and says it will review comments before issuing a final version. Requirements tied to public health and safety, property, national security or U.S. foreign policy would not be affected, according to the agency.
The laws targeted for potential waiver include the National Environmental Policy Act, the Endangered Species Act, parts of the Clean Water Act and the Clean Air Act, and the National Historic Preservation Act, among others, according to the FAA.
“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. “That’s why President Trump has charged USDOT with unlocking the final frontier and re-establishing the United States’ dominance in space. Thanks to President Trump’s leadership, we are supercharging commercial space activity, slashing costs, and strengthening America’s competitive edge in this vital field.”
FAA Administrator Bryan Bedford said the pace of commercial launches is outrunning the agency’s current review process. “Commercial space activity is surging, and we must do everything safely possible to support this vital sector,” Bedford said. “The bottom line is clear: we will not keep pace with this rapid growth unless we streamline, modernize, and strengthen our regulatory approach.”
The FAA authorized a record 204 commercial space operations in fiscal year 2025, according to the agency, and says it has cleared more commercial space operations in the past five years than in the previous three decades combined. The agency’s own forecast projects commercial space operations climbing from 214 this year to 507 in 2036, for a total of up to 4,288 operations over the coming decade.
The proposed rule cites a unanimous 2025 U.S. Supreme Court ruling that found the National Environmental Policy Act had, in the court’s words, “transformed from a modest procedural requirement into a blunt and haphazard tool employed by project opponents.” The FAA did not name specific past licensing cases in which that dynamic played out.
The next step is the close of the public comment period, after which the FAA will decide whether to issue a final rule.