NASA’s Commercial Low Earth Orbit Destinations (CLD) program represents a shift in how the United States maintains a presence in space. As the International Space Station (ISS) approaches its retirement around 2030, NASA looks to private companies to develop and operate new space stations in low Earth orbit (LEO). This approach lets NASA focus on exploration farther out, such as missions to the Moon and Mars, while encouraging a commercial market for space activities.
The program builds on NASA’s history of partnering with industry, similar to how it worked with companies for crew and cargo transport to the ISS. Private stations could host research, manufacturing, and even tourism, creating opportunities beyond government needs. NASA provides funding and guidance, but companies handle much of the design, building, and operations.
Background on the CLD Program
The CLD program started several years ago to ensure no gap in U.S. access to LEO after the ISS ends. The ISS has served as a hub for international cooperation and science since 2000, but its age and maintenance costs make retirement necessary. NASA wants multiple commercial stations to replace it, fostering competition and resilience.
In Phase 1, NASA awarded agreements to several teams to study concepts. These included designs for modular stations that could expand over time. The program emphasizes safety, reliability, and affordability, with stations needing to support crews for extended periods. NASA’s role involves setting standards and buying services, much like it does for launches today.
Recent Strategy Updates
In late July 2025, NASA revised its approach to Phase 2 of the CLD program. The agency moved away from fixed-price contracts for certification and services. Instead, it adopted funded Space Act Agreements (SAAs) to support multiple U.S. companies in designing, developing, and demonstrating their stations.
This change offers more flexibility. Companies can adjust to funding shifts without complex renegotiations. NASA will hold back 25 percent of the funding until a company completes a self-funded, in-space crewed demonstration. Such a demo requires hosting four crew members for 30-day stays, proving the station’s basic functionality.
The agency plans to release a draft request for proposals for full commercial LEO contracts soon, with potential awards in 2026. This could lead to operational stations by the late 2020s, overlapping with the ISS’s final years. NASA’s budget request for fiscal year 2026 includes over $270 million for CLD, with billions more projected in coming years.
These updates follow industry feedback and earlier meetings in 2025, where NASA refined requirements for post-ISS capabilities. The focus now lies on real hardware and demos rather than just designs on paper.
Participating Companies and Their Progress
Several companies lead efforts under the CLD program, each with unique designs.
Blue Origin, partnered with Sierra Space, develops Orbital Reef. This station features inflatable modules and reusable elements, drawing on Blue Origin’s rocket expertise.
Vast advances its Haven-1 module, a compact station set for launch as early as late 2025 on a SpaceX rocket. Vast plans early crewed missions to demonstrate operations, aligning well with NASA’s new emphasis on self-funded demos.
Axiom Space works on modules that initially attach to the ISS before forming an independent station. The company has experience with private astronaut missions and targets a full station in the late 2020s.
Voyager Space, through its Starlab joint venture with Airbus, designs a single-launch station. Starlab could support four crew members and includes European involvement.
Other firms, like Northrop Grumman, contribute through partnerships. Not all will advance to full operations, but the program encourages diverse approaches. Some companies invest their own money to speed development, positioning them for NASA’s requirements.
Challenges and Criticisms
The CLD program faces hurdles. Developing space stations costs billions, and companies must attract investors without guaranteed long-term NASA contracts. The recent strategy shift requires firms to fund demos upfront, which could strain smaller players.
Critics argue the changes might delay a full ISS replacement. Without clear paths to larger stations, the U.S. risks a gap in LEO, allowing competitors like China to gain ground with its own station. Frequent crew rotations for short stays increase costs compared to longer missions on the ISS.
Safety remains a priority, as stations must meet NASA’s standards for human spaceflight. Technical risks, such as docking systems and life support, add complexity. Budget uncertainties in Congress could slow progress, though NASA stresses the program’s role in sustaining U.S. leadership in space.
On the positive side, the updates reward innovation. Companies that launch hardware early gain an edge, potentially accelerating the commercial space economy.
Future Plans
NASA expects commercial stations to begin operations by 2028, providing a two-year overlap with the ISS. This allows testing and knowledge transfer. The agency also seeks proposals for private missions to the ISS in 2026 and 2027 as a bridge.
Long-term, CLD supports a thriving LEO market. Stations could enable new industries, like drug manufacturing in microgravity or space tourism. NASA plans to buy services rather than own facilities, saving money for deep space goals.
The program evolves with input from industry and international partners. As companies mature their designs, NASA will certify stations for crewed use.
Summary
NASA’s CLD program stands at a pivotal point in August 2025, with recent changes promoting flexibility and real-world demonstrations. Private companies continue to develop stations, though challenges like funding and timelines persist. If successful, CLD will secure U.S. access to low Earth orbit and spark a new era of commercial space activity.
What Questions Does This Article Answer?
- What is the purpose of NASA’s Commercial Low Earth Orbit Destinations (CLD) program?
- How does the CLD program intend to replace the International Space Station?
- What roles do private companies play in NASA’s CLD program?
- How has NASA changed its contractual approach in Phase 2 of the CLD program?
- What are the expected timelines for the deployment of commercial LEO stations?
- Which companies are involved in leading the efforts under the CLD program?
- What are some design features of the commercial space stations being developed?
- What challenges does the CLD program face in its development and execution?
- How does NASA plan to transition from the ISS to commercial space stations?
- What long-term benefits does NASA foresee from the transition to commercial space stations in LEO?
