US plans overhaul of commercial space launch licensing

Steps intended to ensure the FAA can support 1,000 commercial space launches annually by 2030.
The US Department of Transportation (DOT) plans next year to begin a “comprehensive overhaul” of its space launch licensing requirements, part of a broader effort by Washington to support the commercial space industry.

Unveiling its intentions on 5 November, the DOT also said the Federal Aviation Administration (FAA) is hiring more space experts, and it has proposed rule changes intended to ease the path by which operators can secure licences from the regulator to launch and return vehicles to earth.

“The FAA will initiate a comprehensive overhaul of its licensing framework in 2027 to keep pace with rapid commercial space innovation,” the DOT says.

The effort will involve eliminating “outdated rules” and taking steps to “cut regulatory burdens and enhance operational flexibility”.

The moves are in response to an August 2025 executive order from President Donald Trump directing the DOT to streamline its launch and re-entry licensing process.

“Ensuring that United States operators can efficiently launch, conduct missions in space and re-enter United States airspace is critical to economic growth, national security and accomplishing Federal space objectives,” Trump’s order stated.

Toward that goal, the DOT has proposed three changes to rules addressing the means by which operators may “abort” flights in case of problems.

An abort is a “hazard control strategy” that can involve, for instance, an “explosive” destruction.

But operators have expressed issues with the rules, including those related to the risk of accidental destruction, FAA documents disclose.

The proposed rule changes would specify when aborting is and is not required, allow abort systems to be turned on and off, and change standards related to preventing failures that could cause multiple casualties, it says.

Additionally, the FAA is hiring a “new team of aerospace engineers” and an associate administrator to its Commercial Space Transportation office. “These engineers will conduct safety analysis, evaluations and mission authorisations to accelerate application turnaround while keeping the public safe during space operations,” the DOT says.

The agency views its efforts as preparing it to support up to 1,000 commercial US launches annually by 2030, up from 217 in 2025.

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