What's Happening?
NASA's Commercial LEO Destinations (CLD) program is undergoing significant changes as the International Space Station (ISS) approaches its planned decommissioning in 2030. An August memo from interim NASA chief Sean Duffy altered the acquisition method
for the CLD program, shifting to Space Act Agreements and requiring stations to host four-person crews for only a month at a time. This change has sparked debate within the space industry, with concerns that the lack of a continuous crewed presence could disadvantage the U.S. in low Earth orbit (LEO) and in broader space exploration efforts. Companies like Starlab Space and Vast are actively working on their CLD projects, with Starlab completing design reviews and Vast planning to launch a single-module station, Haven-1, in May. The Trump administration's budget proposal, which includes a $508 million cut to the ISS budget, further complicates the transition to commercial space stations.
Why It's Important?
The transition from the ISS to commercial space stations is crucial for maintaining U.S. leadership in space exploration and research. The changes in NASA's CLD program could impact the economic viability of space companies, as shorter missions may limit opportunities for payload and research projects. The decision to rely more on private funding, with NASA covering only about 30% of the costs, marks a significant shift from previous programs. This could influence investor confidence and the pace at which commercial space infrastructure develops. The outcome of NASA's upcoming contract awards, expected in 2026, will be pivotal in determining which companies will lead the next phase of U.S. presence in LEO.
What's Next?
In 2026, NASA is expected to award at least two contracts under Phase 2 of the CLD program, with a total value of up to $1.5 billion. The selection of companies will be critical, as it will signal to investors the viability of commercial space stations. The fixed timeline for the ISS's decommissioning in 2030 adds urgency to the transition, as any delays could jeopardize continuous U.S. human presence in LEO. Companies like Starlab and Vast are preparing for these opportunities, with plans to launch new modules and missions in the coming years.
