Title 51National and Commercial Space ProgramsRelease 119-73not60

§50915 Paying Claims Exceeding Liability Insurance and Financial Responsibility Requirements

Title 51 › Subtitle Subtitle V— Programs Targeting Commercial Opportunities › Chapter 509— COMMERCIAL SPACE LAUNCH ACTIVITIES › § 50915

Last updated Apr 5, 2026|Official source

Summary

The Secretary of Transportation can have the U.S. government pay a third party’s successful claim that is more than the license-holder’s required insurance, but only if Congress has given money or okay’ed the payment. Payments cover claims from death, injury, or property loss tied to one launch or reentry only when the total is above the required insurance and not more than $1,500,000,000 plus any inflation since January 1, 1989. The government will not pay for claims caused by willful misconduct by the licensee or transferee. If required insurance won’t cover a claim because of a normal insurance exclusion, the Secretary may pay that excluded claim even if it would otherwise be limited. Before any payment, the government must be told about the claim, be allowed to help defend it, and the Secretary must approve any settlement. The Secretary can refuse to pay amounts she finds unreasonable, but must accept amounts finally decided by a court. Covered people include licensees or transferees, their contractors or subcontractors and customers (and 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 the Secretary by September 30, 2028, and they do not apply to permits. If a launch or reentry looks like it will create claims above the required insurance, the Secretary must check the damage and quickly report the results to Congress. If a court later shows total claims may exceed the required insurance, the President, on the Secretary’s recommendation, must send Congress a compensation plan within 90 days. The plan must show the total dollar amount of claims, suggest where money would come from, include any needed draft laws, and for a single event cannot ask for more than $1,500,000,000. Each plan gets an ID number and must be sent to both the House and Senate the same day when they are in session. "Resolution" here means a single joint resolution of Congress that simply approves that one compensation plan. The Senate must consider any plan that needs extra money or legal authority within 60 calendar days and must use fast, limited procedures: the committee has 20 days to act or a discharge motion can be made, debate on the discharge is limited to 1 hour, debate on the plan itself is limited to 10 hours, amendments are not allowed, and certain procedural motions are decided without debate.

Full Legal Text

Title 51, §50915

National and Commercial Space Programs — Source: USLM XML via OLRC

(a)(1)To the extent provided in advance in an appropriation law or to the extent additional legislative authority is enacted providing for paying claims in a compensation plan submitted under subsection (d) of this section, the Secretary of Transportation shall provide for the payment by the United States Government of a successful claim (including reasonable litigation or settlement expenses) of a third party against a person described in paragraph (3)(A) resulting from an activity carried out under the license issued or transferred under this chapter for death, bodily injury, or property damage or loss resulting from an activity carried out under the license. However, claims may be paid under this section only to the extent the total amount of successful claims related to one launch or reentry—
(A)is more than the amount of insurance or demonstration of financial responsibility required under section 50914(a)(1)(A) of this title; and
(B)is not more than $1,500,000,000 (plus additional amounts necessary to reflect inflation occurring after January 1, 1989) above that insurance or financial responsibility amount.
(2)The Secretary may not provide for paying a part of a claim for which death, bodily injury, or property damage or loss results from willful misconduct by the licensee or transferee. To the extent insurance required under section 50914(a)(1)(A) of this title is not available to cover a successful third party liability claim because of an insurance policy exclusion the Secretary decides is usual for the type of insurance involved, the Secretary may provide for paying the excluded claims without regard to the limitation contained in section 50914(a)(1).
(3)(A)A person described in this subparagraph is—
(i)a licensee or transferee under this chapter;
(ii)a contractor, subcontractor, or customer of the licensee or transferee;
(iii)a contractor or subcontractor of a customer; or
(iv)a space flight participant.
(B)Clause (iv) of subparagraph (A) ceases to be effective September 30, 2028.
(b)Before a payment under subsection (a) of this section is made—
(1)notice must be given to the Government of a claim, or a civil action related to the claim, against a party described in subsection (a)(1) of this section for death, bodily injury, or property damage or loss;
(2)the Government must be given an opportunity to participate or assist in the defense of the claim or action; and
(3)the Secretary must approve any part of a settlement to be paid out of appropriations of the Government.
(c)The Secretary may withhold a payment under subsection (a) of this section if the Secretary certifies that the amount is not reasonable. However, the Secretary shall deem to be reasonable the amount of a claim finally decided by a court of competent jurisdiction.
(d)(1)If as a result of an activity carried out under a license issued or transferred under this chapter the total of claims related to one launch or reentry is likely to be more than the amount of required insurance or demonstration of financial responsibility, the Secretary shall—
(A)survey the causes and extent of damage; and
(B)submit expeditiously to Congress a report on the results of the survey.
(2)Not later than 90 days after a court determination indicates that the liability for the total of claims related to one launch or reentry may be more than the required amount of insurance or demonstration of financial responsibility, the President, on the recommendation of the Secretary, shall submit to Congress a compensation plan that—
(A)outlines the total dollar value of the claims;
(B)recommends sources of amounts to pay for the claims;
(C)includes legislative language required to carry out the plan if additional legislative authority is required; and
(D)for a single event or incident, may not be for more than $1,500,000,000.
(3)A compensation plan submitted to Congress under paragraph (2) of this subsection shall—
(A)have an identification number; and
(B)be submitted to the Senate and the House of Representatives on the same day and when the Senate and House are in session.
(e)(1)In this subsection, “resolution”—
(A)means a joint resolution of Congress the matter after the resolving clause of which is as follows: “That the Congress approves the compensation plan numbered _____ submitted to the Congress on _____ __, 20__.”, with the blank spaces being filled appropriately; but
(B)does not include a resolution that includes more than one compensation plan.
(2)The Senate shall consider under this subsection a compensation plan requiring additional appropriations or legislative authority not later than 60 calendar days of continuous session of Congress after the date on which the plan is submitted to Congress.
(3)A resolution introduced in the Senate shall be referred immediately to a committee by the President of the Senate. All resolutions related to the same plan shall be referred to the same committee.
(4)(A)If the committee of the Senate to which a resolution has been referred does not report the resolution within 20 calendar days after it is referred, a motion is in order to discharge the committee from further consideration of the resolution or to discharge the committee from further consideration of the plan.
(B)A motion to discharge may be made only by an individual favoring the resolution and is highly privileged (except that the motion may not be made after the committee has reported a resolution on the plan). Debate on the motion is limited to one hour, to be divided equally between those favoring and those opposing the resolution. An amendment to the motion is not in order. A motion to reconsider the vote by which the motion is agreed to or disagreed to is not in order.
(C)If the motion to discharge is agreed to or disagreed to, the motion may not be renewed and another motion to discharge the committee from another resolution on the same plan may not be made.
(5)(A)After a committee of the Senate reports, or is discharged from further consideration of, a resolution, a motion to proceed to the consideration of the resolution is in order at any time, even though a similar previous motion has been disagreed to. The motion is highly privileged and is not debatable. An amendment to the motion is not in order. A motion to reconsider the vote by which the motion is agreed to or disagreed to is not in order.
(B)Debate on the resolution referred to in subparagraph (A) of this paragraph is limited to not more than 10 hours, to be divided equally between those favoring and those opposing the resolution. A motion further to limit debate is not debatable. An amendment to, or motion to recommit, the resolution is not in order. A motion to reconsider the vote by which the resolution is agreed to or disagreed to is not in order.
(6)The following shall be decided in the Senate without debate:
(A)a motion to postpone related to the discharge from committee.
(B)a motion to postpone consideration of a resolution.
(C)a motion to proceed to the consideration of other business.
(D)an appeal from a decision of the chair related to the application of the rules of the Senate to the procedures related to a resolution.
(f)This section applies to a license issued or transferred under this chapter for which the Secretary receives a complete and valid application not later than September 30, 2028. This section does not apply to permits.

Legislative History

Notes & Related Subsidiaries

Historical and Revision Notes

Pub. L. 103–272 Revised SectionSource (U.S. Code)Source (Statutes at Large) 70113(a)49 App.:2615(b)(1).Oct. 30, 1984, Pub. L. 98–575, § 16(b)(1)–(4), 98 Stat. 3061; restated Nov. 15, 1988, Pub. L. 100–657, § 5(a), 102 Stat. 3903. 70113(b)49 App.:2615(b)(2). 70113(c)49 App.:2615(b)(3). 70113(d)(1)49 App.:2615(b)(4)(A). 70113(d)(2)49 App.:2615(b)(4)(B). 70113(d)(3)49 App.:2615(b)(4)(C). 70113(e)(1)49 App.:2615(b) (4)(D)(i), (iii). 70113(e)(2)49 App.:2615(b) (4)(D)(ii). 70113(e)(3)49 App.:2615(b) (4)(D)(iv). 70113(e)(4)49 App.:2615(b) (4)(D)(v). 70113(e)(5)49 App.:2615(b) (4)(D)(vi). 70113(e)(6)49 App.:2615(b) (4)(D)(vii). 70113(f)49 App.:2615(b)(5).Oct. 30, 1984, Pub. L. 98–575, § 16(b)(5), 98 Stat. 3061; restated Nov. 15, 1988, Pub. L. 100–657, § 5(a), 102 Stat. 3903; Nov. 4, 1992, Pub. L. 102–588, § 503, 106 Stat. 5124. In subsection (a)(1), before clause (A), the word “particular” is omitted as surplus. In clause (B), the words “the level that is” are omitted as surplus. In subsection (b)(1), the words “civil action” are substituted for “suit” for consistency in the revised title and with other titles of the United States Code and rule 2 of the Federal Rules of Civil Procedure (28 App. U.S.C.). In subsection (b)(2), the words “the Government must be given an opportunity” are substituted for “by the United States, at its election” for clarity. In subsection (c), the words “just and” and “judgment” are omitted as surplus. In subsection (d), the word “particular” is omitted as surplus. In subsection (d)(2), before clause (A), the words “or plans” are omitted because of 1:1. In subsection (e)(1), before clause (A), the text of 49 App.:2615(b)(4)(D)(i) is omitted as surplus. In clause (A), the word “only” is omitted as surplus. The word “Congress” is substituted for “the first blank space therein being filled with the name of the resolving House” to correct an error in the law. In subsection (e)(3), the words “once introduced with respect to a compensation plan” are omitted as surplus. In subsection (e)(4)(A), the word “either” is omitted as surplus. In subsection (f), the word “only” is omitted as surplus. Pub. L. 104–287This amends 49:70113(e)(6)(D) to correct an error in the codification enacted by section 1 of the Act of July 5, 1994 (Public Law 103–272, 108 Stat. 1340).

Editorial Notes

Amendments

2024—Subsec. (a)(3)(B). Pub. L. 118–159, § 5702(3)(A) substituted “
September 30, 2028” for “
September 30, 2025”. Subsec. (f). Pub. L. 118–159, § 5702(3)(B), substituted “
September 30, 2028” for “
September 30, 2025”. 2015—Subsec. (a)(1). Pub. L. 114–90, § 103(a)(2)(A), in introductory provisions, substituted “a person described in paragraph (3)(A)” for “a licensee or transferee under this chapter, a contractor, subcontractor, or customer of the licensee or transferee, or a contractor or subcontractor of a customer, but not against a space flight participant,”. Subsec. (a)(3). Pub. L. 114–90, § 103(a)(2)(B), added par. (3). Subsec. (f). Pub. L. 114–90, § 102(d), substituted “
September 30, 2025” for “
December 31, 2016”. 2014—Subsec. (f). Pub. L. 113–76 substituted “
December 31, 2016” for “
December 31, 2013”. 2013—Subsec. (f). Pub. L. 112–273 substituted “
December 31, 2013” for “
December 31, 2012”. 2010—Pub. L. 111–314, § 4(d)(2), (3)(O), successively renumbered section 70113 of title 49 and section 70113 of this title as this section. Subsec. (a)(1)(A). Pub. L. 111–314, § 4(d)(5)(Q), substituted “section 50914(a)(1)(A)” for “section 70112(a)(1)(A)”. Subsec. (a)(2). Pub. L. 111–314, § 4(d)(5)(R), substituted “section 50914(a)(1)(A)” for “section 70112(a)(1)(A)” and “section 50914(a)(1)” for “section 70112(a)(1)”. 2009—Subsec. (f). Pub. L. 111–125 substituted “
December 31, 2012.” for “
December 31, 2009.” 2004—Subsec. (a)(1). Pub. L. 108–492, § 2(c)(22), inserted “but not against a space flight participant,” after “subcontractor of a customer,”. Subsec. (f). Pub. L. 108–492, § 2(c)(23), inserted at end “This section does not apply to permits.” Pub. L. 108–428 substituted “
December 31, 2009” for “
December 31, 2004”. 2000—Subsec. (e)(1)(A). Pub. L. 106–405, § 6(a), substituted “20__” for “19__”. Subsec. (f). Pub. L. 106–405, § 5(b), substituted “
December 31, 2004” for “
December 31, 2001”. Pub. L. 106–377 substituted “
December 31, 2001” for “
December 31, 2000”. 1999—Subsec. (f). Pub. L. 106–74 substituted “
December 31, 2000” for “
December 31, 1999”. 1998—Subsecs. (a)(1), (d)(1), (2). Pub. L. 105–303 inserted “or reentry” after “one launch”. 1996—Subsec. (e)(6)(D). Pub. L. 104–287 substituted “related to a resolution” for “related to resolution”.

Statutory Notes and Related Subsidiaries

Effective Date

of 2000 Amendment Pub. L. 106–405, § 6(b), Nov. 1, 2000, 114 Stat. 1752, provided that: “The amendment made by subsection (a) [amending this section] takes effect on January 1, 2000.”

Reference

Citations & Metadata

Citation

51 U.S.C. § 50915

Title 51National and Commercial Space Programs

Last Updated

Apr 5, 2026

Release point: 119-73not60