President-elect Trump’s choice to lead the Department of Transportation (DOT), Sean Duffy, has stated he will reconsider fines levied by the Federal Aviation Administration (FAA) against SpaceX for launch license violations. During a Senate Commerce Committee confirmation hearing on January 15th, Duffy indicated he would “review” the fines and the overall regulatory process for commercial launches.
The FAA fined SpaceX $633,009 in September for license violations concerning two 2023 missions. Penalties included $350,000 for using a different control center and failing to conduct a pre-launch poll for a June launch, and $283,009 for using an unapproved propellant tank farm in July.
Both SpaceX and congressional supporters criticized the FAA’s actions. SpaceX argued the violations didn't affect public safety, blaming the FAA for slow license modifications. Sen. Ted Cruz (R-Texas), the Senate Commerce Committee chairman, urged Duffy to review the fines, stating, “Fines like these, in my judgement, are not only corrosive but are counter to U.S. law, which states that DOT should ‘encourage, facilitate and promote’ commercial space, not stymie, curtail and obstruct it,” He also requested a review of “curtailing bureaucratic overreach” for commercial launch.
Duffy responded, “I commit to doing a review and working with you in following up on the space launches and what’s been happening at the FAA.” Sen. Eric Schmitt (R-Mo.) also highlighted the Office of Commercial Space Transportation (AST) within the FAA, expressing concerns about its resources and responsiveness, particularly given competition with China.
The hearing largely focused on other transportation sectors. However, speculation persists about the Trump administration potentially making AST a standalone office under the Secretary of Transportation, a move that wouldn't require congressional approval and could enhance its efficiency and resources.