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Economy & Markets

NASA Faces Pressure to Replace Space Launch System with Commercial Rockets

Cost overruns and schedule delays have prompted lawmakers on both sides of the aisle to examine private‑sector launch options.

Faces Pressure — Mediterranean Sea (MODIS 2020-08-20)
Photo: MODIS Land Rapid Response Team, NASA GSFC (Public domain) via Wikimedia Commons
⚡ The Bottom Line

Congress is set to hold a hearing on March 12 to evaluate the feasibility of shifting future deep‑space launch contracts to commercial providers, with both parties presenting competing arguments about cost, security, and industrial policy. The outcome will influence NASA’s launch strategy and the federal budget allocation for heavy‑lift rockets in the coming fiscal year.

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NASA’s flagship Space Launch System (SLS), a heavy‑lift rocket intended for deep‑space missions, is confronting cost overruns and launch delays, prompting congressional hearings on whether commercial providers could fulfill the same role.

The SLS program, launched in 2011, has cost more than $20 billion to date and is projected to cost about $2 billion per launch, while its first flight has been pushed from 2023 to 2025, according to NASA’s FY2024 budget request.

What the Right Is Saying

Senator John Cornyn (R‑TX) argued that the SLS is essential for maintaining a U.S. industrial base capable of heavy‑lift launch capability, noting that “national security and deep‑space exploration require a reliable, government‑owned system that private firms cannot guarantee.”

The Heritage Foundation’s policy brief echoed this view, emphasizing that the SLS supports high‑pay manufacturing jobs in states like Alabama and Mississippi, where the program’s primary contractor, Boeing, operates major facilities.

What the Left Is Saying

Senator Elizabeth Warren (D‑MA) told reporters that the $2 billion per‑launch price is “unsustainable” and urged the administration to redirect funding to proven commercial rockets such as SpaceX’s Starship, which the company estimates could launch for under $2 billion per mission once operational.

The Center for American Progress released an analysis stating that investing in the private launch market would create more jobs across the broader economy and reduce the taxpayer burden, citing the agency’s own data that commercial launch costs are roughly a tenth of SLS’s projected price.

What the Numbers Show

NASA’s FY2024 budget requests $2.4 billion for the SLS program, covering development, testing, and the first two planned launches, while the agency’s total FY2024 launch budget for commercial contracts (including SpaceX and United Launch Alliance) is $1.1 billion.

Commercial launch providers offer lower per‑launch costs: SpaceX’s Falcon Heavy averages $150 million per launch, and Starship’s projected cost is under $2 billion per mission, according to the company’s public statements. By comparison, the SLS’s per‑launch cost is estimated at $2 billion, nearly 13 times the cost of Falcon Heavy.

The Bottom Line

Congress is set to hold a hearing on March 12 to evaluate the feasibility of shifting future deep‑space launch contracts to commercial providers, with both parties presenting competing arguments about cost, security, and industrial policy. The outcome will influence NASA’s launch strategy and the federal budget allocation for heavy‑lift rockets in the coming fiscal year.

Sources