Highlights
- Florida established a new fund to support partnerships between Florida-based and international aerospace companies, with Space Florida overseeing competitive grants aimed at advancing space exploration, manufacturing and infrastructure.
- Florida Senate Bill 1662 authorizes state grants for spaceport development and space industry-related construction, while also extending benefits to Florida's commercial shipbuilders.
- Recent federal and state legislative actions reflect strong support for infrastructure growth in Florida's space and shipbuilding industries, reinforcing the state's role as a national leader in aerospace.
Recent legislation in Florida, combined with recent provisions in the federal budget, promotes Florida's reputation and role as a welcoming environment for the space industry. Federal lawmakers from Florida, the Florida Legislature and Gov. Ron DeSantis appear to favor the creation of opportunities for infrastructure improvements and developments that will prompt growth in the space and commercial shipbuilding industries in Florida.
Senate Bill (SB) 1516 creates the International Aerospace Innovation Fund, which will provide further grants that Space Florida will disseminate. In addition, SB 1662 will enable the provision of state grant money for spaceports and other "space industry-related planning or construction." The legislation also renders commercial shipbuilders in Florida as eligible for benefits. Both statutes took effect on July 1, 2025.
Funding for Infrastructure Projects
The federal government has also recently taken action to prompt spaceport development. Upon signing H.R. 1, the One Big Beautiful Bill Act, on July 4, 2025, President Donald Trump enacted a tax exemption for spaceport facility bonds. The legislation includes a straightforward amendment to the Internal Revenue Code, such that the Code now includes spaceports as eligible for "exempt facility bond" status.1 Sen. Ashley Moody (R-Fla.) sponsored the amendment, titled Secure U.S. Leadership in Space Act, to ensure tax-exempt status will apply to bonds that will assist in funding spaceport development and improvements. The new provision defines "spaceport" broadly to include not only a facility located at or in close proximity to a launch or reentry site for flight control operations and launch services, but also the use of such sites for manufacturing, assembling or repairing spacecraft, space cargo1 or other facilities and transferring crew, participants or cargo. Commentators have speculated the availability of funding via tax-exempt bonds will prompt public-private investments for major projects.
In addition, the Florida Legislature was active during the 2025 legislative session in promoting spaceport development and improvements. Both the state budget, which the governor signed on June 30, 2025, and recent legislation show Florida's investment in spaceports and seaports. The state's fiscal year (FY) 2025-2026 budget includes a total of $13.7 billion for the Florida Department of Transportation's (FDOT) State Transportation Work Program to support, in part, $90.5 million for spaceport investments and $120.7 million for seaport improvements.
Florida Seaports: Infrastructure Funding
SB 1662 amends a current statute that established the Florida Seaport Transportation and Economic Development (FSTED) Program, such that the program must now provide funding for:
- spaceport or space industry-related planning or construction of facilities on seaport property that are necessary or useful for advancing the space industry in the state and provide an economic benefit to the state
- commercial shipbuilding and manufacturing facilities on seaport property, if such projects provide an economic benefit to the community in which the seaport is located2
The FSTED Program, originally established in 1990, has long provided funding for specific types of port facilities or port transportation projects. Under the direction of the FSTED Council, the program provides $25 million annually in grants, in addition to $35 million that FDOT allocates on an annual basis. Local ports that participate in the program match the state funding amount they receive, usually on a 50-50 basis.
The FSTED Council is required to prepare a five-year Florida Seaport Mission Plan concerning the development of port facilities, which must include specific recommendations of construction of transportation facilities connecting any port to another transportation mode. Under SB 1662, the plan must also now include "the construction of transportation facilities connecting any port to the space and aerospace industries."3 The 2025-2029 Seaport Mission Plan addresses each port in Florida. Of note, it identifies Port Canaveral as a vital link that is critical for space launch operations and states the port's five-year, $560 million capital improvement plan is focused on infrastructure improvements to meet the needs of the area and promote economic prosperity.
Florida Spaceports: Protection of Funding
SB 1662 also established an important restriction on use of funding for seaports, designed to ensure that land designated for space industry activities will not be used for other purposes. By amending a statute that established the state's Strategic Port Investment Initiative, the legislation prohibits any project grant funding under any program established in Chapter 311, Florida Statutes, that is for a seaport located in a county in which real property is designated as a spaceport territory from being used for activities that do not support spacecraft launch and recovery operations.4 Pursuant to the amendment, funding is now contingent upon the seaport, as the grant recipient, agreeing with FDOT that it will not convert any planned or existing land, facility or infrastructure that supports "cargo purposes" to any alternative purpose. "Cargo purposes" under this provision includes any asset that "supports spaceport activities." The only exception to this restriction that might be available requires engaging in public notice and allowing opportunity for comment and requires approval from the legislature to use the funds for such a project.
This restriction is consistent with Space Florida's 2024 Annual Operations Report,5 which identifies Port Canaveral as being in need of expansion. The report stated maritime operations are critical for recovery and movement of spaceflight hardware. As such, space launch operations must be able to rely on consistent availability of such operations and development of the infrastructure necessary for them. The report summarizes the Florida Spaceport System Maritime Intermodal Transportation Study, which analyzed input from engineers and stakeholders to assess maritime support options for Florida's spaceport operations. The study ultimately concluded that expansion of the wharf at Port Canaveral would be necessary for Florida to meet the growing demands of space transportation and solidify its position as a global hub for aerospace commerce, as Port Canaveral is the only location in the world where a spaceport and seaport are co-located. The report stated the current facilities at Port Canaveral are insufficient to meet projected space industry demand, "necessitating over 9,000 linear feet of dedicated wharf space." A review of proposed designs for immediate use of existing infrastructure or significant expansions for long-term capacity at Port Canaveral is likely already underway.
International Aerospace Innovation Fund
SB 1516 obligates Space Florida to secure funding for and administer grants from a newly established International Aerospace Innovation Fund.
Partnerships
The legislation directs the fund to support the development of partnerships among Florida-based aerospace companies and international aerospace companies, innovation in critical technology areas related to aerospace – including "space exploration, advanced manufacturing, and space infrastructure" – and investment on a global scale to Florida's aerospace ecosystem.6 The bill designates Space Florida as the entity responsible for overseeing the fund and sets forth descriptive eligibility criteria for projects that might receive funding. Under the eligibility criteria, each proposed project must:
- include at least one aerospace company or organization based in Florida
- consist of a partnership that involves at least one of the following: an international aerospace company, a university, space agency or research institute
- have the purpose of or potential for commercialization
SB 1516 also grants authority to Space Florida to develop further eligibility criteria. It directs Space Florida to award funding to eligible projects based on merit and upon reviewing competitive bids. To review applications, Space Florida must designate a "panel of aerospace experts" to evaluate and recommend projects to receive the funding. Stakeholders interested in remaining aware of grant funding would be wise to track the progress of the grant award program.
Sources of funding might consist of direct appropriations from the Florida Legislature to Space Florida for purposes of the fund, investment by the Florida Opportunity Fund or other investments, loans or grant funding. Private sector investments that would match funds from Space Florida might also be a source of funding, as would international contributions, to the extent permitted by state law, as long as the funding furthers collaboration with foreign industry development organizations or innovation authorities to co-fund eligible projects.
Space Florida's 2024 Annual Operations Report shows that Space Florida had 161 projects in development with an estimated value of $5.6 billion in capital investment. The report further showed that Space Florida provided $101.9 million in funding for 30 research projects, partnerships or grants.7 Given the effects of SB 1516, the 2025 Annual Operations Report will likely contain even larger figures.
In addition to funding provisions, the legislation also authorizes Space Florida to identify and establish partnerships with countries that have "robust aerospace sectors." It also provides comprehensive authority to Space Florida to enter into bilateral agreements to implement the legislation; such agreements may include, but are not limited to, the establishment of "co-funding commitments, intellectual property rights, and collaboration terms." Enabling such collaboration demonstrates the Florida Legislature's motivation to ensure Florida remains well known for aerospace research.
Space Florida
Establishment of the fund is an important update to Space Florida's duties. Since 2006, when the legislature passed the Space Florida Act, Space Florida has functioned as an independent special district in Florida, with the purpose of fostering growth and development of a world-leading aerospace industry in Florida. It receives state funding through contracts with the Florida Department of Commerce and FDOT. Space Florida has long served as the state's point of contact for state aerospace-related activities with federal agencies, the military, state agencies, businesses and the private sector. In addition, Space Florida maintains broad authority to provide financial services to support aerospace-related business development in Florida and strategic direction for aerospace-related research priorities of Florida and its aerospace businesses.
As with the aerospace industry in Florida, Space Florida's role has grown over time. In 2023, the Florida Legislature expanded the duties of Space Florida by requiring it to solicit input regularly from the aerospace industry and various spaceport territory stakeholders. The 2023 legislation also required the organization to partner with Florida's Metropolitan Planning Organization Advisory Council to coordinate aerospace planning and programming as part of Florida's cooperative transportation planning process. In addition, Space Florida is obligated to partner with certain Florida organizations and agencies in efforts to strengthen education and workforce programs in support of aerospace activities.
Stakeholders and developers will see some movement in Space Florida activities in the coming year. In addition, increased interest from the federal government and the Florida Legislature, combined with consistent interest from the governor's office, will likely result in continued growth in space projects, along with infrastructure projects that further space industry interests in Florida.
Footnotes
1. H.R. 1 § 70309 (119th Cong.) (referring to 26 U.S.C. § 142(a)(1)).
2. SB 1662 at § 2 (2025) (adding subsections (3)(b)(12) and (13) to § 311.07. Fla. Stat.). Upon enactment, SB 1662 became Ch. 2025-155, Laws of Florida (2025).
3. SB 1662 at § 3 (2025) (amending § 311.09(3), Fla. Stat.).
4. "Spaceport territory" means those properties listed in section 331.04, Florida Statutes (2024). Spaceport territories include certain real property sites in Brevard, Santa Rosa, Okaloosa, Gulf, Walton, Duval and Miami-Dade counties, as well as "real property within the state which is a spaceport licensed by the Federal Aviation Administration, as designated by the board of directors of Space Florida." 331.304(3), Fla. Stat. (2024).
5. Space Florida, Space Florida Annual Report 2024 at 43.
6. SB 1516 at § 3 (2025) (establishing section 331.372, Florida Statutes). Upon enactment, SB 1516 became Ch. 2025-154, Laws of Florida (2025).
7. Space Florida, Space Florida Annual Report 2024 at 8, 11.
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