FAA pushes spaceports with P3s as spaceport bonds stand ready

Michelle Bruzzese/Bloomberg

The Federal Aviation Administration is seeking information about where and how the U.S. should build spaceports and space infrastructure as it builds out the nascent transportation industry.

The administration's policy push paves the way for the first tax-exempt private activity bonds for spaceports and opens doors for public-private partnerships.

The Aug. 25 Request for Information follows President Trump's Aug. 20 National Space Transportation Policy, which emphasizes the need for improvements to existing space launch infrastructure and development of new sites.

The RFI seeks information on funding mechanisms and the potential utility of public-private partnerships in spaceport development. "Public-private partnerships could be a valuable and innovative tool for structuring spaceport development in particular," said the RFI, which asks for comments by Oct. 26.

"What funding constraints exist, and how could they be addressed, to include alternative financing structures? How could public-private partnerships best be leveraged to finance spaceport development?"

The administration has set a goal of 1,000 launches and reentries annually by 2030 and up to 10,000 FAA-licensed launches and reentries a year by 2035.

Last year's One Big Beautiful Bill Act created tax-exempt private activity bonds for spaceports for the first time. The financing tool has yet to tapped in the year since the OBBBA passed, although a planned Space Florida conduit financing for an obligor code-named "Project Jaguar" may be the first deal in the works.

In an Aug. 28 brief on the RFI titled "United States Space Dominance: Big changes are ahead," law firm Holland & Knight noted that the newly qualified tax-exempt spaceport PABs "will likely reshape financing and development opportunities in the commercial space sector because it expands access to tax-exempt bond financing for a broad range of spaceport-related facilities," the firm said. "The provision also creates flexibility for public-private partnerships, manufacturing and infrastructure projects."

The White House memo directs the Transportation Secretary to coordinate with other agency heads to identify, within 180 days, "potential locations for additional launch facilities and targeted development or improvement of launch infrastructure."

Right now, 83% of launches come from just three sites: Cape Canaveral Space Force Station and Kennedy Space Center in Florida, and Vandenberg Space Force Base in California. "Increased launch and reentry demand will require more sites to provide more capacity," the FAA's release said.

The government is looking for feedback on what makes a viable new spaceport, why some are underused and for input on previously discussed locations, including in Puerto Rico and "offshore launch platforms."

The FAA currently lists 20 spaceports across 10 states. Florida accounts for six, Texas has four, California and Virginia both have two. Alabama, Alaska, Colorado, Georgia, New Mexico, and Oklahoma all have one. 

Oklahoma last year passed a bill that merged the Oklahoma Space Industry Development Authority into the state's Department of Aerospace and Aeronautics in a move that Lt. Gov. Matt Pinnell hailed the move as a sign "Oklahoma doesn't just plan to compete—we plan to lead."

In related news, Louisiana Gov. Jeff Landry announced Tuesday that SpaceX is building a $100 billion campus, including new launch pads, along the state's coastal wetlands. The facility will be similar to SpaceX's Texas facility but larger, the governor's office said. The investment "puts us at the center of the next great frontier," Landry said.