Title 51 › Subtitle Subtitle V— - Programs Targeting Commercial Opportunities › Chapter CHAPTER 509— - COMMERCIAL SPACE LAUNCH ACTIVITIES › § 50915
The Secretary of Transportation must arrange for the U.S. government to pay a successful third‑party claim (including reasonable legal or settlement costs) against certain people linked to a licensed launch or reentry, but only if Congress has already provided money or passes special authority. Payments only cover amounts over the required insurance or financial responsibility and are capped at $1,500,000,000 above that required amount, plus any increase needed to reflect inflation after January 1, 1989. Payments do not cover claims caused by willful misconduct by the licensee. If required insurance excludes a claim for a common reason the Secretary accepts, the Secretary may still pay that excluded claim. Before any payment, the government must be told about the claim or lawsuit, allowed to join the defense, and the Secretary must approve any settlement paid from government funds. The Secretary can refuse payment if the amount is not reasonable, but must accept a final court award as reasonable. If claims may exceed the required coverage, the Secretary must survey the damage and report to Congress. If a court shows liability may exceed the required coverage, the President must send Congress, within 90 days, a compensation plan with the total dollar amount, proposed payment sources, any needed legislative language, and an ID number; no single event plan may ask for more than $1,500,000,000. A "resolution" is a single joint resolution that approves one numbered compensation plan. Covered people include licensees or transferees; contractors, subcontractors, or customers; contractors of customers; and space flight participants (coverage for space flight participants ends September 30, 2028). The rules apply only to licenses with a complete application received by September 30, 2028, and they do not apply to permits.
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National and Commercial Space Programs — Source: USLM XML via OLRC
Legislative History
Reference
Citation
51 U.S.C. § 50915
Title 51 — National and Commercial Space Programs
Last Updated
Apr 6, 2026
Release point: 119-73