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Good Afternoon!
"Gentlemen, we have run out of money; now we have to think." Winston Churchill may or may not have said that, but it's exactly the situation the U.S. government found itself in this week after the Senate failed to pass competing spending bills before October 1. Oddly enough, a Senate report earlier this week alleged that NASA jumped the funding gun by attempting to implement the Trump administration's proposed 25% funding cut for the agency, despite the absence of Congressional approval.
Beyond Washington budget headlines, DoD, BIS and DHS all introduced measures that will likely have a significant impact on the commercial space industry; space leaders from around the world convened in Australia for the International Astronautical Congress; Italy faces a choice between Starlink and building its own LEO constellation while it waits on the EU's long-delayed IRIS² program; ESA and KASA inked a new agreement on space cooperation and the U.S., France and other allies are teaming up in orbit to counter China's rapidly advancing space capabilities.
All this and more in this edition of Akin's Space Law, Regulation and Policy Update.
Akin Spotlight
Akin's Trump Executive Order Tracker provides a high-level overview of executive orders published by the new administration. These orders cut across dozens of industries and topics. The Tracker is updated as orders and Akin's in-depth analysis of specific orders are published.
Please visit Akin's Trump Executive Order Overview to view a matrix of the orders.
On The Hill
Articles and Quotes
Senate Rejects Efforts to Keep Government Open After Midnight (Space Policy Online)
The Senate failed to pass competing Republican and Democratic funding bills on September 30, triggering a government shutdown at midnight. The Democratic proposal was rejected on party lines, while the House-passed Republican continuing resolution (H.R. 5371) fell short 55–45, with three members of the Democratic caucus voting in favor and one Republican opposed. As a result, agencies are executing their shutdown plans, with funding from regular appropriations suspended except for essential services related to life and property. The National Aeronautics and Space Administration (NASA) confirmed that work on Artemis II and III, the International Space Station and active satellite missions will continue. Senate leaders remain divided, with Republicans citing cracks in Democratic opposition and pledging to reintroduce the bill, while Democrats criticized the GOP bill for excluding health care priorities and bypassing bipartisan negotiations. Congress is now uncertain when it will reconvene to address the shutdown, which affects discretionary spending but not programs funded by mandatory spending or reconciliation legislation like H.R. 1.
Senate Report Accuses NASA of Prematurely Implementing Budget Cuts (SpaceNews)
A new Senate Commerce Committee staff report alleges that NASA has begun executing the administration's proposed fiscal year (FY) 2026 budget despite the absence of Congressional approval, posing potential legal and safety concerns. The report, released by Senate Democrats on September 29, claims the White House Office of Management and Budget directed NASA to act on the proposed 25% funding reduction ahead of any appropriations, including cuts to science and technology programs. Whistleblowers cited in the report, along with remarks from senior agency officials, suggest that NASA staff were instructed to disregard programs excluded from the president's budget request. The report also points to a verbal directive culture, staffing reductions totaling 20%, and a growing reluctance among employees to raise safety issues. One whistleblower warned of heightened astronaut risk as a result. With a government shutdown imminent, concerns have intensified over possible layoffs and broader attempts to reshape agency operations under the guise of executive authority.
Top HASC Dem Doubts Senate NDAA's Future (Politico)
House Armed Services Committee (HASC) Ranking Member Adam Smith indicated that Congress may again finalize the National Defense Authorization Act (NDAA) without Senate passage of its own version. With the Senate stalled for much of September and facing a government shutdown, Smith said informal negotiations between House and Senate defense leaders have already begun based on committee-approved language and a single manager's amendment. While a Senate vote remains possible, the delay raises the likelihood of a repeat of last year's process, when a final compromise was reached without full Senate passage. If the Senate abandons floor debate, amendments from rank-and-file senators, particularly on divisive issues like National Guard deployments and presidential war powers could be excluded. House Armed Services Chair Mike Rogers has set a target of reaching a deal before Thanksgiving. The "Big Four" leaders from the House and Senate committees have not yet met but are expected to begin discussions in the coming weeks.
Introduced Legislation & Legislative Updates
The Accessing Satellite Capabilities to Enable New Discoveries (ASCEND) Act (S. 1437) which aims to codify NASA's Commercial SmallSat Data Acquisition (CSDA) program, was placed on the Senate Legislative Calendar under General Orders. Calendar No. 173.
The Safe ORBIT Act (S. 428) which aims to modify the junctions of leadership of the Office of Space Commerce (OSC) and promote space situational awareness (SSA), among other unnamed provisions, was placed on the Senate Legislative Calendar under General Orders. Calendar No. 170.
Rep. August Pfluger (R-TX) has introduced a bill to streamline the application of regulations relating to commercial space launch and reentry requirements and licensing of private remote sensing space systems, and for other purposes (H.R. 5602).
Rep. Dale Strong (R-AL) has introduced the SPACEPORT Act (H.R. 5447), which amends chapter 511 of title 51, United States Code, to modify the authority for space transportation infrastructure modernization grants.
Rep. French Hill (R-AR) has introduced the Taiwan and American Space Assistance Act of 2025 (H.R. 5626) which provides for expanded cooperation by NASA and the National Oceanic and Atmospheric Administration with Taiwan.
A bill to provide for the International Security Affairs authorities of the Department of State (DOS) (H.R. 5247) was reported favorably by the House Committee on Foreign Affairs.
A bill to ensure the alignment of economic and foreign policies, to position DOS to reflect that economic security is national security (H.R. 5248) was reported favorably by the House Committee on Foreign Affairs.
Please find our Space Legislation Tracker here.
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