A former NASA Administrator now working as a lobbyist for United Launch Alliance is pushing Congress to pass legislation that would cap the percentage of federal space contracts any single company can receive—a move widely viewed as targeting SpaceX's dominant position in the launch services market.
Jim Bridenstine, who led NASA from 2018 to 2021, has joined ULA's lobbying efforts to promote what he calls "industrial diversification" in the space sector. The proposed legislation would prevent any single contractor from receiving more than 40% of NASA's launch services budget or 50% of Department of Defense space transportation contracts.
The timing is significant. SpaceX currently holds approximately 65% of all federal launch contracts, a market share that has grown dramatically since the company proved its reusable Falcon 9 rocket could dramatically reduce launch costs. The company's Starship vehicle, now in operational testing, promises to further disrupt the market with even lower costs and unprecedented payload capacity.
Bridenstine argues the proposal addresses national security concerns about over-reliance on a single provider. "We cannot put all our eggs in one basket when it comes to assured access to space," he stated in testimony before the Senate Commerce Committee. "What happens if SpaceX experiences a prolonged grounding? What if geopolitical factors compromise their operations?"
But critics see the move as using national security rhetoric to protect incumbent contractors from market competition. Eric Berger, senior space editor at Ars Technica, notes that ULA has struggled to compete on price despite receiving billions in development subsidies for its Vulcan rocket. "This isn't about resilience, it's about protecting a business model that can't compete," aerospace analyst told reporters.
