The recently passed National Defense Authorization Act (NDAA) for fiscal year 2025 includes a significant provision extending key regulations impacting the commercial space industry. The bill extends both a "learning period" limiting the Federal Aviation Administration's (FAA) ability to implement safety regulations for commercial human spacecraft and the launch indemnification program.

This NDAA, the product of House and Senate negotiations, extends the “learning period” – restricting FAA regulatory power – until the end of 2027. Originally slated to expire on January 1st, this extension addresses a key concern for the commercial space sector.

The bill also extends launch indemnification, which protects launch licensees against claims exceeding their insurance coverage, until September 2028. This element was also a priority for the industry, given its previously scheduled expiration in September 2025. The Senate version already contained both extensions.

While the commercial space industry advocated for a longer extension, the three-year period represents a compromise. Previous legislative attempts proposed extensions lasting until October 2031 and five years, but these failed to advance. As David Cavossa, president of the Commercial Space Federation, stated in a recent interview, “We really need to get the learning period extension passed.” He expressed optimism regarding its inclusion in the final NDAA.

The FAA, however, has consistently maintained that the learning period, which it terms a moratorium, should expire, arguing it is prepared to implement safety regulations. Minh Nguyen, executive director of strategic planning at the FAA’s Office of Commercial Space Transportation, stated at a February conference, “We’ve been doing all we can to prepare for the sunset of the moratorium…Our position is that we should be ready to regulate when the moratorium sunsets.”