Spaceport Act Authorizes $10M Annually for Launch Site Upgrades, Expands Criteria for Federal Funding

The new SPACEPORT Act (officially the Spaceport Project Opportunities for Resilient Transportation Act) is a behind-the-scenes update to how the U.S. government funds space launch infrastructure—think of it as federal grants for building and upgrading the launch pads and facilities needed to get rockets off the ground.

This bill doesn't launch rockets itself, but it updates the rules for the Secretary of Transportation to hand out grants for these projects. It clarifies that a "public agency" eligible for this funding now includes entities like airport authorities and other tax-supported organizations, not just state governments. Crucially, it authorizes up to $10 million in annual funding for these infrastructure grants, ensuring a dedicated, though relatively small, pot of money for spaceport modernization.

The 90% Rule and the National Interest Waiver

When a public agency applies for one of these grants, the federal government generally covers up to 90 percent of the project cost. This means the applicant—say, a county port authority looking to build a new launch complex—still has to find the remaining 10 percent of the funding somewhere else. That 10% match can be a real hurdle for local entities, especially those with tight budgets.

However, the bill includes a significant escape clause: the Secretary of Transportation can waive that 90% limit and fund 100% of the project if they decide it’s "truly in the national interest" to do so. This gives the Secretary a lot of discretionary power. While this flexibility means high-priority projects won’t stall out over local budget issues, it’s a subjective standard. If you’re a taxpayer, you’ll want to know exactly what criteria define "truly in the national interest" when the government decides to fully fund a multi-million-dollar project.

Expanded Criteria: It’s Not Just NASA Anymore

Under the existing rules, project selection often prioritized government needs. The SPACEPORT Act changes the criteria for picking winners. When evaluating projects, the Secretary must now consider the needs of civil, national security, and commercial space transportation. This means that a project that benefits a private company launching satellites or the Department of Defense is now weighted equally with one that supports NASA.

To make sure everyone is on the same page, the Secretary of Transportation must consult with the Secretary of Defense, the NASA Administrator, and the Secretary of Commerce before making decisions. For the commercial space industry, this is a big win, ensuring that infrastructure development directly supports the rapidly growing private sector.

The Homework Assignment for the Feds

The bill also hands the Secretary of Transportation a major reporting mandate. Within two years of the law passing, the Secretary must deliver a comprehensive report to Congress. This report has to analyze the current and future demand for space transportation across all sectors (civil, commercial, national security, and international). It also needs to suggest new laws or policies to keep the U.S. competitive and resilient in space.

After that initial report, the Secretary must provide an update every four years. For anyone trying to plan long-term in the space industry—from launch providers to small satellite manufacturers—these reports should provide crucial data and insight into the government’s strategic thinking and future funding priorities.