On February 2, 2026, U.S. Secretary of Defense Pete Hegseth delivered a major policy address at Blue Origin’s Rocket Factory in Merritt Island, Florida, marking a critical expansion of the Department’s ongoing acquisition reforms into the space domain.
This speech, a central pillar of Hegseth’s “Arsenal of Freedom” tour, called for a new era of American space dominance to counter the rapid technological advancements of adversaries like Russia and China. Hegseth emphasized that space is no longer just a supporting domain but the “ultimate high ground” essential for military operations in every other theater.
Fostering a Competitive Space Industrial Base
The primary objective of this reform push is to diversify the defense industrial base and mitigate the Pentagon’s growing reliance on a limited number of providers. While acknowledging the pivotal role currently played by SpaceX, Hegseth underscored the necessity of robust competition to ensure resilience and drive down costs. The Secretary explicitly told the audience of Blue Origin employees that the Department “doesn’t care what company name is printed on the side of a rocket” as long as it delivers the best technology at the highest speed for the warfighter.
Strategic Shifts in National Security Space Launch (NSSL)
Central to these reforms is the National Security Space Launch (NSSL) Phase 3 program, which utilizes a dual-lane approach to encourage market entry for emerging launch providers. On January 9, 2026, the Space Force awarded $739 million in task orders under Lane 1, a more “commercial-like” acquisition tier designed to integrate newer rockets from companies like Blue Origin and Rocket Lab alongside established incumbents. By accepting a higher risk threshold for certain missions, the Pentagon aims to operationalize Proliferated Low Earth Orbit (pLEO) constellations more rapidly, enhancing the military’s missile warning and tracking capabilities through the Space Development Agency (SDA).
Codifying Acquisition Speed and Accountablity
The 2026 reforms also include significant structural changes to the Pentagon’s bureaucracy, largely codified in the FY 2026 National Defense Authorization Act (NDAA). The Department has moved to eliminate dozens of stagnant committees, replacing them with empowered Portfolio Acquisition Executives (PAEs) who have the authority to reallocate funds and accelerate program timelines. Hegseth’s strategy, termed “Transforming the Warfighting Acquisition System,” shifts the focus from lowest-cost procurement to “best value” and “price competition,” allowing the military to harness the same iterative innovation seen in the private sector.
The Road Ahead: Certification and Scaling
As the Pentagon pushes for three viable domestic heavy-lift providers, the focus in 2026 remains on the certification of new vehicles like Blue Origin’s New Glenn and Rocket Lab’s Neutron. Achieving full operational capability for these platforms is seen as vital for the Sovereign Space Resilience strategy, ensuring that the U.S. maintains an “innovation pipeline” that can outpace global competitors. By blending civil, commercial, and military capabilities, the administration seeks to leverage the full weight of American economic power to maintain superiority in the orbital domain.