NASA Commercial Low Earth Orbit Destinations Program: Status as of September 8, 2025

Shift From Government-Led Operations to Private Sector

The NASA Commercial Low Earth Orbit Destinations program, often called CLD, stands as a key effort to shift human spaceflight activities in low Earth orbit from government-led operations to private sector involvement. As the International Space Station approaches the end of its service life, this program seeks to ensure that research, technology development, and other activities continue without interruption. Private companies now take the lead in designing, building, and operating new space stations, while NASA acts as a customer buying services. This transition reflects broader trends in space exploration, where commercial entities handle routine orbital tasks, freeing up resources for deeper space missions.

Low Earth orbit, or LEO, refers to the region of space roughly 100 to 1,200 miles above Earth’s surface. It’s where most human spaceflight happens today. Satellites, telescopes, and crewed missions operate here because it’s close enough for easy access yet far enough to experience microgravity. The International Space Station has served as the primary platform in LEO for over two decades, hosting astronauts from multiple countries and enabling thousands of experiments in biology, physics, and materials science. the station’s hardware is aging, and maintenance costs are rising. NASA has set 2030 as the target for deorbiting the ISS, meaning it will be guided back into Earth’s atmosphere to burn up safely over the ocean.

Without a replacement, the U.S. could face a gap in LEO capabilities. That’s where the CLD program comes in. Launched in 2021, it encourages private companies to develop commercial space stations that can host NASA astronauts, conduct research, and support other users like private researchers or tourists. The program divides into phases, starting with initial design work and moving toward full operations. As of September 2025, the program has undergone notable adjustments to adapt to budget realities and industry feedback.

Background on Low Earth Orbit Activities

Human presence in low Earth orbit began in earnest with the Skylab space station in the 1970s, followed by the Soviet Mir station in the 1980s and 1990s. The International Space Station, a collaboration among NASA, Roscosmos, the European Space Agency, JAXA, and the Canadian Space Agency, launched its first module in 1998. It’s a massive structure, about the size of a football field, with living quarters, labs, and solar panels generating power.

Over the years, the ISS has proven the value of long-term human habitation in space. Astronauts have studied how the human body adapts to weightlessness, grown crystals for drug development, and tested technologies for future missions to the Moon and Mars. It’s also a symbol of international cooperation, even during tense geopolitical times. Yet, the station wasn’t built to last forever. Cracks in modules, radiation exposure, and orbital debris pose ongoing risks. NASA estimates annual operating costs at around $3 billion to $4 billion, a significant portion of its budget.

As NASA turns its focus to the Artemis program for lunar exploration and eventual Mars missions, it wants to offload LEO responsibilities. Commercial companies have stepped up, drawing on advancements in reusable rockets and spacecraft. SpaceX with its Crew Dragon and Boeing with Starliner already transport astronauts to the ISS under NASA’s Commercial Crew Program. The CLD program builds on that model, extending it to entire space stations.

Private space stations promise several benefits. They can be more flexible, allowing for custom modules tailored to specific needs like manufacturing or tourism. Costs might drop as competition grows, and innovation could accelerate without the bureaucracy of government projects. For NASA, this means buying services rather than owning hardware, similar to how it purchases satellite launches today.

Origins and Early Development of the CLD Program

NASA announced the CLD program in 2021 as part of its strategy for a sustainable LEO economy. The agency recognized that relying solely on the ISS wasn’t viable long-term. It issued a call for proposals, seeking concepts from industry for destinations that could support crewed operations after 2030.

In December 2021, NASA awarded funded Space Act Agreements to four teams for Phase 1, which focused on design maturation and risk reduction. These agreements, totaling about $415 million, helped companies refine their ideas and demonstrate feasibility.

The selected teams included:

• Axiom Space, leading a project to build modules that initially attach to the ISS before detaching to form an independent station.
• Blue Origin, partnering with Sierra Space and others for Orbital Reef, a mixed-use business park in space.
• Nanoracks (now part of Voyager Space), collaborating with Lockheed Martin and Airbus on Starlab, a single-launch station.
• Northrop Grumman, which later withdrew and shifted focus.

Phase 1 involved detailed engineering, safety assessments, and business planning. Companies had to show how their stations would meet NASA’s requirements for life support, power, communications, and docking ports compatible with existing spacecraft.

By mid-2025, progress varied. Axiom Space conducted ground tests and planned its first module launch in 2026. Starlab advanced its design, aiming for a 2028 launch on a SpaceX Starship. Orbital Reef faced delays, with reports of reduced funding from Blue Origin. A new entrant, Vast, joined the fray with its Haven-1 module, though not initially part of CLD funding.

These efforts highlighted the challenges of building space stations privately. Unlike the ISS, which cost over $100 billion with international contributions, commercial stations must attract investors and customers to turn a profit.

Phase 1 Achievements and Ongoing Work

Phase 1 has seen tangible milestones. Teams completed system requirements reviews, where they outlined how their stations would function. They also addressed interoperability, ensuring stations can connect with NASA’s vehicles like Crew Dragon and Starliner.

Axiom Space, for instance, signed agreements with international partners and began manufacturing hardware in Italy and Texas. Their plan involves adding modules to the ISS starting in 2026, then separating around 2030 to operate independently. This approach minimizes risk by leveraging the existing station.

Starlab, designed as a large, inflatable module, benefits from Airbus’s experience with the Columbus lab on the ISS. Voyager Space has marketed it for research and manufacturing, with potential customers in pharmaceuticals and materials.

Orbital Reef envisions a modular design with habitats, labs, and even a zero-gravity gym. Despite setbacks, Sierra Space continues developing its Dream Chaser spacecraft for cargo delivery.

Vast, though a latecomer, announced Haven-1, a single-module station for short stays, and Haven-2 as a larger follow-on. They secured a launch on Falcon 9 for 2025 and crewed missions with SpaceX.

NASA has provided technical guidance, including standards for radiation protection and emergency procedures. The agency also conducted market studies to gauge demand beyond government needs, identifying opportunities in space tourism and in-orbit manufacturing.

funding remains tight. NASA’s budget for CLD in fiscal year 2025 was around $200 million, less than requested. This has slowed some activities, prompting calls for more investment to avoid a post-ISS gap.

Major Changes in 2025

In 2025, NASA made substantial revisions to the CLD program to address fiscal constraints and reduce risks. A policy directive issued on July 31, 2025, by Acting Administrator Sean Duffy outlined these shifts. The changes respond to budget shortfalls and the need for flexibility in partnering with industry.

Originally, Phase 2 was set to involve firm fixed-price contracts for certifying stations and purchasing initial services. This would have locked in costs and timelines. Instead, NASA opted for multiple funded Space Act Agreements, extending the collaborative model from Phase 1. This allows for milestone-based payments and adjustments as needed.

The new Phase 2, renamed Commercial Destinations – Development and Demonstration Objectives or C3DO, emphasizes design maturation leading to a critical design review and an in-space crewed demonstration. It runs for up to five years, with NASA planning to award at least two, preferably three, agreements through an open competition.

Minimum requirements were relaxed. Earlier plans called for stations to support four crew members continuously for six months. Now, the baseline is four crew for one-month periods, with options for longer stays. This “crew-tended” model reduces complexity and costs, though it steps back from full-time habitation.

Funding for Phase 2 is projected at $1 billion to $1.5 billion from fiscal years 2026 to 2031, down from earlier estimates of $2.1 billion. At least 25% of payments tie to a successful on-orbit demonstration, incentivizing performance.

Certification and service purchases move to a new Phase 3, using traditional contracts under federal regulations. This keeps competition open, allowing new entrants.

NASA released a draft Announcement for Partnership Proposals on September 5, 2025, seeking industry input. An industry briefing is scheduled for September 8, 2025, with comments due by September 12. The final announcement is expected October 3, proposals by December 1, and awards in April 2026.

These adjustments aim to make the program more viable amid uncertain budgets. They provide companies with more support during development while deferring firm commitments.

Details of the Revised Phase 2

Under C3DO, awardees will focus on advancing designs to readiness for critical review, where experts assess feasibility. This includes detailed blueprints, simulations, and prototypes.

A key element is the in-space demonstration, required by 2030. This involves launching a station or module, docking a crewed spacecraft, and operating for at least a month. Demonstrations must show core functions like life support, power generation, and waste management.

Stations need compatibility with NASA’s transport systems, including docking ports for Crew Dragon, Starliner, and cargo vehicles like Cygnus or Dream Chaser. Safety standards remain high, covering fire suppression, medical facilities, and evacuation options.

The program encourages innovation, such as inflatable habitats for larger volumes or advanced robotics for maintenance. Companies must also plan for commercial customers, developing business models beyond NASA contracts.

NASA will evaluate proposals based on technical merit, cost-sharing, and alignment with agency needs. Preference goes to teams showing strong progress in Phase 1 or equivalent experience.

This phase addresses earlier concerns about rushing into contracts. By using agreements, NASA can adjust funding yearly, responding to congressional appropriations.

Industry Partners and Their Projects

Several companies lead the charge in CLD.

Axiom Space, based in Houston, plans Axiom Station. It starts with modules attached to the ISS: AxH1 in 2026, followed by others. By 2030, it detaches as a free-flying station. Axiom has partnerships with Thales Alenia Space for module construction and has flown private astronauts to the ISS.

Starlab, from Voyager Space, Lockheed Martin, and Airbus, is a one-piece station launching on Starship. It features a metallic hull with labs and living areas for four crew. The team targets 2028 operations, emphasizing research in microgravity.

Orbital Reef, led by Blue Origin with Sierra Space, Boeing, and others, proposes a scalable station. Modules include habitats from Sierra’s LIFE inflatable technology and Blue’s utilities. Though progress slowed in 2024, the concept includes spaces for media production and tourism.

Vast’s Haven-2 aims to succeed the ISS directly. Building on Haven-1, a 2025 test module, it incorporates artificial gravity via rotation, a first for stations. Vast focuses on scalability and has secured NASA collaboration.

Other players, like Gravitics, develop large-diameter modules for multiple uses. International interest grows, with ESA and JAXA considering service purchases.

These projects vary in maturity, but all face common hurdles like launch availability and supply chain issues.

Challenges Facing the Program

Budget limitations top the list. NASA’s overall funding hasn’t kept pace with inflation, and competing priorities like Artemis strain resources. The CLD program received less than requested in recent years, leading to the 2025 revisions.

Timelines pose another risk. Developing a space station takes years, and delays in launches or testing could create a gap after 2030. The ISS might extend operations, but that’s not guaranteed due to its age.

Technical challenges include ensuring reliability in harsh space conditions. Radiation, micrometeorites, and thermal extremes demand robust designs. Crew health in microgravity, including bone loss and vision issues, requires countermeasures.

Market development is uncertain. While NASA provides anchor tenancy, stations need private customers for sustainability. Space tourism grows, with companies like Virgin Galactic and Blue Origin, but demand for orbital stays remains nascent. Manufacturing in space, like producing optics or alloys, shows promise but needs scale.

Competition from abroad adds pressure. China’s Tiangong station operates, and plans for expansions could attract partners if U.S. options lag.

Environmental concerns, like orbital debris from deorbiting the ISS, require careful management. NASA plans a controlled reentry, but risks exist.

Despite these, optimism persists. Falling launch costs, thanks to reusable rockets, make space more accessible. Private investment in space tech surges, with billions poured into startups.

Implications for Space Exploration

The CLD program could reshape how humans use space. By commercializing LEO, NASA frees budget for ambitious goals like lunar bases and Mars landings. Private stations might enable new industries, from drug discovery to satellite servicing.

For the workforce, it means jobs in engineering, operations, and support. Companies build facilities in the U.S., boosting local economies.

Internationally, it maintains U.S. leadership in space. Partners can join commercial stations, continuing cooperation post-ISS.

If successful, CLD sets a precedent for commercializing other areas, like lunar habitats or asteroid mining.

failure to deliver on time could disrupt science and technology pipelines. Hundreds of experiments run yearly on the ISS; alternatives must be ready.

Summary

The NASA Commercial Low Earth Orbit Destinations program evolves to meet the demands of a post-ISS era. With revisions in 2025 shifting to flexible agreements and scaled-back requirements, it supports industry in building viable space stations. Teams like Axiom, Starlab, Orbital Reef, and Vast push forward, despite challenges in funding and timelines. This effort ensures continued human presence in LEO, fostering innovation and economic growth in space. As proposals roll in and demonstrations approach, the program holds potential to transition space activities smoothly into commercial hands.