The potential US Secretary of Transportation promised to deal with SpaceX fines and eliminate the space bureaucracy

This week, Congress held confirmation hearings for new ministers nominated by new US President Donald Trump. Among others, Congress heard the nominee for Secretary of Transportation, Sean Duffy, whose office includes the Federal Aviation Administration (FAA). The department literally holds the keys to space – it issues launch licenses and fines violators. And it became a hindrance.

Image source: SpaceX

In September 2024, a scandal between FAA officials and SpaceX, led by Elon Musk, spilled into the public space. The reason was the department’s fine of $633,009 for two alleged launch license violations committed in June 2024. SpaceX said there were no grounds for penalties, and Musk publicly called on the head of the FAA to resign.

During the hearing, two Republican congressmen reminded the candidate and those present that the Department of Transportation should promote the development of the space industry in the United States, and not hinder it, including through imposing fines. In response, Sean Duffy stated, “I am committed to looking into the situation and cooperating with you in tracking space launches and FAA activities.”

Duffy also promised to review the fines imposed on SpaceX and systematically approach the problem of delays in issuing flight permits.

As for the FAA and licensing, this is handled by a relatively small staff within the Office of Commercial Space Transportation (AST), which is part of the FAA. According to rumors, Donald Trump may initiate the removal of AST from the management. He or the Secretary of Transportation would not need congressional authorization to do so. Until the mid-1990s, the issuance of licenses was handled by a separate office within the ministry, and this can again be made an independent office with a simple order. It is expected that such a move will reduce bureaucratic obstacles for the space industry.