Cleared for Takeoff: Commercial Space Launch Regulatory Reform Continues

November 10, 2026

On the heels of the comment cycle closing for five Federal Aviation Administration (FAA) proposals to further the Enabling Competition in Commercial Space Industry Executive Order (EO), the Secretary of Transportation last week announced three new proposed rules and one new final rule in furtherance of the White House’s National Space Transportation Policy (the NSTP). The EO charged the Secretary of Transportation with streamlining the launch and reentry licensing process to facilitate increased commercial space launches by American operators.

The new proposed rules, announced November 5 (along with a final rule making minor technical corrections to existing regulations), would clarify the conditions under which a vehicle operator is not required to abort a flight, address the requirements for flight safety limits and define when a vehicle operator must initiate flight abort, and potentially allow operators to account for vehicle breakup to rule out high-consequence, multi-casualty events during random reentry. Comments are due December 9.

Comments in response to the FAA’s first round of proposals showed positive engagement from the aerospace and satellite industry. These proposals sought comment on resolving ambiguities in the existing FAA space launch rules and increasing efficiency in the license application process. Several space organizations, associations, and individuals weighed in, generally expressing their support for this initiative with comments discussing the importance of clearer, less burdensome licensing requirements for industry growth and innovation.

The FAA’s proposed Part 450 revisions are just one piece of a “major regulatory overhaul” planned for 2027 to further the NSTP, which directs federal agencies to grow U.S. space transportation range capacity to 1,000 launches and reentries per year by 2030. More regulatory changes are expected to follow to advance these policy goals.

Wiley has a deep bench of expertise on space, satellite, and FAA issues. If you would like more information on these regulatory changes or have questions, please contact one of the authors listed on this alert.

Francesca Burke, a Law Clerk at Wiley Rein LLP, contributed to this alert.