Texas is Leading the U.S. toward a New Frontier in Space Innovation

The final frontier has not just been a dream for the Lone Star State — it’s a part of our legacy. Then-Senate Majority Leader Lyndon Johnson guided the creation of U.S. space policy after the Sputnik, the world’s first satellite, was launched by the Soviet Union in 1957. Since then, Texas has been at the forefront of space exploration and the space economy, pioneering groundbreaking innovations that propelled humanity to make that “one giant leap.”

Houston’s NASA Johnson Space Center remains the heart of human spaceflight, astronaut training and mission control, generating $118.7 million in economic impact, 1,710 jobs and $53.7 million in personal income in the greater Houston area. Put simply, Space City forged the way for Texas to be the gateway to the stars.

As a new golden age of space exploration and economic development dawns, Texas is once again leading the charge, solidifying its position as the center for the national and global space economy. Last month, Cedar Park-based Firefly became the first commercial company to successfully land on the moon. Axiom, a Houston-based company, is building the world’s first commercial space station. ASTS in Midland is the fastest growing space-based telecommunications company in the world. Blue Origin is conducting major R&D operations in West Texas.

Since SpaceX’s decision in 2024 to move its incorporation from Delaware to our pro-growth, pro-business economic environment, the company has become an outsized force in Texas’ aerospace sector. SpaceX has since become an outsized force in Texas’ commercial space sector, having invested $1 billion in its Boca Chica launch site, hundreds of millions in building rocket engines in McGregor, and now manufacturing one million printed circuit boards per year for its StarLink satellite division in Bastrop.

A recent report from McKinsey found that the global space economy is expected to reach $1.8 trillion in value by 2035, driven primarily by “the need for greater connectivity via satellites, higher demand for positioning and navigation services on mobile phones, and increased demand for insights powered by AI and machine learning.”

It is no surprise that leaders in aerospace are choosing to build in our great state. In the 2023 Texas Legislature, Texas House Appropriations Chair Greg Bonnen and Senate Finance Chair Joan Huffman led the effort to invest $150 million into the creation of the Texas Space Commission. Governor Abbott launched the Commission – led by a distinguished Board of private sector leaders and executive director Norman Garza – to inaugurate a new chapter in our state’s leadership in space innovation. The initiative supports the development of critical space infrastructure, workforce pipelines and research partnerships – all designed to attract the brightest minds and most ambitious ventures in the industry.

With our highly skilled workforce and a vision for a space-driven future, we are poised to emerge as a powerhouse in aerospace’s rapidly expanding private sector. We must continue charting a bold course to preserve our edge in space technology and secure our place as the best business climate in the galaxy.

It is no surprise that leaders in aerospace are choosing to relocate to our great state. In March of 2024, Governor Abbott launched the groundbreaking Texas Space Commission – led by executive director Norman Garza – marking a new chapter in our state’s leadership in space innovation. Backed by a $350 million Texas Space Fund, the initiative supports the development of critical space infrastructure, workforce pipelines and research partnerships – all designed to attract the brightest minds and most ambitious ventures in the industry.

Texas offers an unmatched environment for aerospace innovation grounded in both economic strength and academic excellence. As home to the second-largest manufacturing workforce in the nation, Texas provides the skilled labor and industrial capacity essential to supporting advanced aerospace development.

This strong foundation is further powered by our world-class research and development ecosystem, anchored by premier institutions such as the University of Texas at Austin, Texas A&M, Rice University and so many others. These universities are not only producing top-tier aerospace engineers but are also at the bleeding edge of research in space medicine, propulsion systems and robotics. These institutions invest over $250 million annually in aerospace-related research and development (R&D). Texas A&M, for its part, launched its Space Institute last year, investing in a new $200 million facility near NASA’s Johnson space center to support training missions and advanced research and development in aeronautics and robotics. This synergy between a robust industrial base and a thriving academic landscape makes Texas the ideal launchpad for the future of aerospace innovation.

With our geographic advantages, pro-business regulatory climate, strong economy and skilled, Texas is uniquely positioned to boldly go where no one has gone before. That’s why, this session, the Texas Association of Business (TAB) is strongly supporting HB 4660 and HB 4661 by Representative Janie Lopez (R-San Benito) – vital legislation that will help secure our space future and protect the state’s global competitive edge.

The 89th Texas Legislature has a historic opportunity to solidify Texas’s leadership in the space economy by passing these forward-thinking measures, which would amend current law to authorize the temporary closure of beaches or beach access points – a necessary step to provide SpaceX with the operational certainty needed to continue developing the world’s first integrated commercial spaceport in Cameron County. These bills also propose a legal framework to temporarily restrict access to ensure public safety and maintain operational security near coastal launch sites.

To further cement Texas’ role as the center of the new, growing space economy, TAB is supporting:

• SB 2188 (Hinojosa, Adam) and HB 4660 (Lopez, Janie): Relating to space flight activities.

• SB 2230 (Hinojosa, Adam) and HB 4661 (Lopez, Janie): Relating to the closure of beaches for space flight activities; creating a criminal offense.

• HB 3092 (Gerdes): Relating to a certificate of public convenience and necessity to construct an electric transmission line.

• SB 1485 (Hinojosa, Adam) and HB 4663 (Lopez, Janie): Relating to the route designation for the issuance of a permit for the movement of oversize and overweight vehicles in certain counties.

• SB 1200 (Kolkhorst) and HB 2884 (Landgraf): Relating to the required disclosure of certain financial relationships in civil actions against United States defense contractors.

• SB 1197 (Birdwell) and HB 3272 (Geren): Relating to the operation of an unmanned aircraft over a spaceport; creating a criminal offense.

• SB 1198 (Birdwell) and HB 2973 (Morales, Eddie): Relating to the designation of spaceports as critical infrastructure facilities for purposes of criminal and civil liability.

• SB 1731 (Hinojosa, Adam) and HB 3045 (Gerdes): Relating to a franchise tax exemption for corporations operating a spaceport for certain national defense purposes.

• SB 1715 (Middleton) and HB 3547 (Paul): Relating to an exemption from the franchise tax for certain qualified space companies. 

• HB 1288 (Landgraf): Relating to discretionary funding decisions of the Texas Transportation Commission.

• HB 4157 (Bonnen): Relating to liability protections for commercial space flight and exploration.

• SCR 12 (Hinojosa, Adam) and HCR 35 (Ordaz): Urging Congress to amend the Internal Revenue Code to make spaceports eligible for tax-exempt private activity bonds.

• Support additional funding for Texas Space Commission.

As I highlighted during last week’s episode of the Texas Tribune’s Tribcast – “How long til there’s a Buc-ee’s on Mars?” – strengthening our space economy is not just a priority, it’s a strategic imperative for the future of Texas:

The modern space race is about far more than technological advancement — it’s a contest for global leadership, national security and long-term competitiveness. Texas plays a critical role in ensuring the United States stays ahead of rising global rivals like China. By investing in the commercial space sector, we not only drive innovation but also reinforce our strategic value to the Department of Defense and NASA. With a highly skilled workforce, top-tier universities, a thriving aerospace industry and the creation of the Texas Space Commission, our state is accelerating to the forefront of space innovation. As President John F. Kennedy stated in 1962, “The exploration of space will go ahead, whether we join in it or not.” – and Texas is not just joining, we’re leading.

-       Glenn Hamer, President & CEO, Texas Association of Business

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