Press Releases

Congressman Salud Carbajal (CA-24) is highlighting new authority he delivered in this year’s annual defense policy bill that allows the Space Force to share more of the upkeep costs of their bases and launch ranges with the commercial space companies utilizing U.S. military-owned ranges.

As a senior member of the U.S. Armed Service Committee and the representative for the United States Western Range at Vandenberg Space Force Base, Rep. Carbajal successfully pushed this year to update current law, permitting up to $5 million in reimbursements from any space launch company for indirect costs associated with launches contracted with a U.S. military department.

“When commercial space launch first came onto the scene, their use of military facilities was minimal enough that there was less concern for the wear and tear their operations would have on our nation’s launch ranges. Nowadays, that era already seems like ancient history,” said Rep. Carbajal. “With dozens of launches already a year, and continued exponential growth projected for the next decade, we need to ensure that ranges like Vandenberg are able to share the cost burden of operating these ranges with the private companies that are utilizing our bases. This is a critical update to our nation’s laws, one that will keep the commercial space industry working cooperatively with our Space Force and the Central Coast on the cutting edge of the world’s space industry.”

Previously, U.S. statute only allowed a contract between a commercial space company and the U.S. military to require reimbursements for direct costs associated with the launch. Direct costs include manpower and equipment usage directly required to execute a successful launch, like weather monitoring.

Rep. Carbajal’s updated language permits launch contracts to include reimbursements for indirect costs, including but not limited to utility payments and repair and upkeep costs from the increased use of the launch facilities and base.

Reimbursements for indirect costs paid by a commercial space company are limited to 30% of what the company is contracted to reimburse for direct launch costs, with a cap of $5 million per year.

This update was first proposed by Rep. Carbajal as an amendment to the Fiscal Year 2024 National Defense Authorization Act (FY24 NDAA) earlier this year. The amendment was adopted with bipartisan support, and subsequently was included in the final bicameral version of the annual defense policy legislation (Section 1603).

The language is expected to be signed into law by President Biden this week.

The statute is applicable to all new and newly re-negotiated space launch contracts.

The updated language comes as the Central Coast continues to be on the cutting edge of commercial space research and operations.

Recently SpaceX, one of the leading space launch companies operating out of Vandenberg, estimated that their launch rate out of Vandenberg would triple in the next few years.