Senate Report 119-117 - SPACE EXPLORATION RESEARCH ACT

[Senate Report 119-117]
[From the U.S. Government Publishing Office]

Calendar No. 369
119th Congress } { Report
SENATE
2d Session } { 119-117
_______________________________________________________________________

SPACE EXPLORATION RESEARCH ACT

__________

R E P O R T

of the

COMMITTEE ON COMMERCE, SCIENCE, AND
TRANSPORTATION

S. 2351

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

April 13, 2026.--Ordered to be printed

_______

U.S. GOVERNMENT PUBLISHING OFFICE

69-010 WASHINGTON : 2026

SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
one hundred nineteenth congress
second session

TED CRUZ, Texas, Chairman
JOHN THUNE, South Dakota MARIA CANTWELL, Washington
ROGER F. WICKER, Mississippi AMY KLOBUCHAR, Minnesota
DEB FISCHER, Nebraska BRIAN SCHATZ, Hawaii
JERRY MORAN, Kansas EDWARD J. MARKEY, Massachusetts
DAN SULLIVAN, Alaska GARY C. PETERS, Michigan
MARSHA BLACKBURN, Tennessee TAMMY BALDWIN, Wisconsin
TODD YOUNG, Indiana TAMMY DUCKWORTH, Illinois
TED BUDD, North Carolina JACKY ROSEN, Nevada
ERIC SCHMITT, Missouri BEN RAY LUJAN, New Mexico
JOHN CURTIS, Utah JOHN W. HICKENLOOPER, Colorado
BERNIE MORENO, Ohio JOHN FETTERMAN, Pennsylvania
TIM SHEEHY, Montana ANDY KIM, New Jersey
SHELLEY MOORE CAPITO, West Virginia LISA BLUNT ROCHESTER, Delaware
CYNTHIA M. LUMMIS, Wyoming
Brad Grantz, Majority Staff Director
Lila Harper Helms, Democratic Staff Director

Calendar No. 369
119th Congress } { Report
SENATE
2d Session } { 119-117

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SPACE EXPLORATION RESEARCH ACT

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April 13, 2026.--Ordered to be printed

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Mr. Cruz, from the Committee on Commerce, Science, and Transportation,
submitted the following

R E P O R T

[To accompany S. 2351]

[Including cost estimate of the Congressional Budget Office]

The Committee on Commerce, Science, and Transportation, to
which was referred the bill (S. 2351) to supplement existing
lease authorities available to the Administrator of the
National Aeronautics and Space Administration to support
research, education, and training, and for other purposes,
having considered the same, reports favorably thereon with an
amendment (in the nature of a substitute) and recommends that
the bill (as amended) do pass.

PURPOSE OF THE BILL

The purpose of S. 2351 is to expand the leasing authority
of the National Aeronautics and Space Administration (NASA)
Administrator to enter leases for real property at NASA centers
to develop facilities for space-related activities.

BACKGROUND AND NEEDS

In June 2023, as part of NASA's broader long-term strategy
to establish regional hubs of human spaceflight expertise and
expand civil and commercial access to space, the agency issued
an announcement for proposals for the use of underdeveloped
NASA center property.\1\ The request sought to lease all or
part of the property to qualified entities for development. The
objectives were to:

\1\NASA,``Lease for Non-Excess Undeveloped Land at Johnson Space
Center (Houston, TX),'' notice ID AFP-JSC-EXP-2023, June 9, 2023,
https://sam.gov/opp/3fdf780607c64f24ad
1668e983674fdb/view.
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Identify specific industry and non-Federal public
entities interested in leasing NASA non-excess
undeveloped land.
Increase commercial access to space.
Enhance U.S. commercial competitiveness in the space
and aerospace industries.
Develop and expand the U.S. civil and commercial
workforce.
Attract a wider user base and increase operational
activity at NASA centers.
Promote partnerships that will build, expand,
modernize, or operate aerospace-related capabilities on
or near NASA property.

Precedence for these types of agreements was established in
1988 when NASA was authorized to lease property at the Lewis
Research Center for an Ohio Aerospace Center.\2\ In 2003, NASA
was authorized to enter into enhanced use leases (EUL)
agreements that enabled centers to lease underutilized or real
property at the Kennedy Space Center and Ames Research Center
to private entities for cash or in-kind consideration and
retain the proceeds, rather than return the proceeds to the
Department of the Treasury.\3\
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\2\National Aeronautics and Space Administration Authorization Act,
Fiscal Year 1989, Public Law 100-865, 211, 102 Stat. 4083, 4093 (1988).
\3\Consolidated Appropriations Resolution, 2003, Public Law 108-7,
117 Stat. 11 (2003).
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In 2023, Texas A&M submitted a proposal to Johnson Space
Center (JSC) to conduct mission training, research, and
curation of astronautical materials. The Texas State
Legislature passed House Bill 1, which appropriated funding for
the Texas Space Commission and Texas A&M University for the
construction of facilities adjacent to JSC.\4\ Representatives
from JSC and Texas A&M broke ground on the Texas A&M Space
Institute at Exploration Park in November 2024. JSC has
expressed interest in leveraging the capabilities of the Space
Institute to supplement its existing facilities. However,
Congress must first authorize NASA to lease back the developed
leased land. The Space Exploration Research Act would expand
this allowable use to all NASA centers, which will further
encourage NASA, academia, and other partners to collaborate on
underutilized center property that outside entities develop.
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\4\Brandon Lingle, ``Texas Space Commission Offers $150M in Its
First-Ever Grants,'' Government Technology, September 17, 2024, https:/
/www.govtech.com/products/texas-space-commission-offers-150m-in-its-
first-ever-grants.
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SUMMARY OF PROVISIONS

S. 2351 would do the following:
Enable the Administrator of NASA to enter into
leases for real property or facility construction at
NASA centers with the State or its agent; a nonprofit
corporation or foundation organized exclusively for
education or scientific purposes; or an institution of
higher education. The facilities can be used:
to conduct aeronautical and space research;
to educate and train individuals for careers in
the space industry;
to carry out the transfer of aeronautical and
space technology between the U.S. public and
domestic private sectors;
to conduct aeronautics and space-related
scientific, engineering, medical, or academic
activities; and
to conduct any other space-related activity
relevant to NASA's mission.
Enable the Administrator of NASA to lease back those
facilities to utilize their capabilities.
Require the delivery of a report that would document
the number of leases, how the leases apply to NASA's
mission, and its value to the Agency.

LEGISLATIVE HISTORY

S. 2351 was introduced on July 17, 2025, by Senator Cruz
(for himself and Senators Padilla, Britt, Lujan, Schiff, and
Wicker) and was referred to the Committee on Commerce, Science,
and Transportation of the Senate. On July 30, 2025, the
Committee met in open Executive Session and, by voice vote,
ordered S. 2351 reported favorably with an amendment (in the
nature of a substitute).

ESTIMATED COSTS

In accordance with paragraph 11(a) of rule XXVI of the
Standing Rules of the Senate and section 403 of the
Congressional Budget Act of 1974, the Committee provides the
following cost estimate, prepared by the Congressional Budget
Office:

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

The bill would:
Authorize the National Aeronautics and Space
Administration (NASA) to lease back certain properties
used to support the agency's mission
Require NASA to report annually to the
Congress concerning the properties it leases back from
third parties
Estimated budgetary effects would mainly stem from:
Increasing direct spending from leased-back
properties
Areas of significant uncertainty include:
Anticipating the number and type of
properties that NASA would lease back under the bill's
authority
Bill summary: S. 2351 would expand the authority of the
National Aeronautics and Space Administration (NASA) to enter
into leases with other entities (including other federal
agencies or state and local governments) by allowing the agency
to lease back properties that are used to support its mission.
Under current law, NASA has broad authority to enter into
leases, including enhanced-use leases and leases under the
National Historic Preservation Act (NHPA). NASA's enhanced-use
lease authority expires on December 31, 2032; however, its
authority under NHPA is permanent. The bill also would require
NASA to report annually to the Congress on those leases.
Estimated Federal cost: The estimated budgetary effects of
S. 2351 are shown in Table 1. The costs of the legislation fall
within budget function 250 (general science, space, and
technology).

TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF S. 2351
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By fiscal year, millions of dollars--
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2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2026-2031 2026-2036
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INCREASES IN DIRECT SPENDING

Estimated Budget Authority................ 0 10 10 10 10 10 10 8 8 8 8 50 92
Estimated Outlays......................... 0 * 1 3 6 9 9 9 9 8 8 19 62
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* = between zero and $500,000.
CBO estimates that implementing the bill would increase spending subject to appropriation by less than $500,000 in every year and over the 2026-2031
period.

Basis of estimate: NASA currently enters into lease
agreements that contain terms for third parties to construct or
renovate facilities on federal land for energy production,
launches, and research, among other specialized uses. CBO
considers the ability for third parties to finance projects on
behalf of the government under those agreements to be similar
to using federal borrowing authority for infrastructure
construction or improvements; CBO treats the cost of those
transactions as direct spending.
Under the bill, NASA's authority to lease back a given
property mostly or entirely for governmental use would increase
the likelihood that third-party investments would be used for
governmental purposes and would thus increase direct spending.
Direct Spending: By allowing NASA to lease back property
for up to 50 years, S. 2351 would increase the likelihood that
third-party investments would be used for governmental purposes
and would thus increase direct spending relative to current
law. Using information from NASA on current leasing and
expected lease payments, and based on historical spending
patterns for similar activities, CBO estimates that enacting
the bill would increase commitments for the construction or
improvement of NASA property by about $10 million annually,
resulting in an increase in direct spending of $62 million over
the 2026-2036 period. That estimate incorporates the
expectation that annual leasing activity under the bill would
decline starting in 2033 when NASA's enhanced-use lease
authority is scheduled to expire.
Spending subject to appropriation: S. 2351 would require
NASA to report to the Congress each year on its enhanced-use
leases. Based on the costs of similar activities, CBO estimates
that implementing that provision would cost NASA less than
$500,000 over the 2026-2031 period. Any related spending would
be subject to the availability of appropriated funds.
Uncertainty: CBO's estimate of direct spending under S.
2351 is subject to significant uncertainty. We cannot
anticipate the number or type of properties that NASA would
lease back under the different authorities available. The costs
could be higher or lower than CBO estimates and would depend on
how NASA uses the authority in the bill and on the terms of
individual leases.
Pay-As-You-Go considerations: The Statutory Pay-As-You-Go
Act of 2010 establishes budget-reporting and enforcement
procedures for legislation affecting direct spending or
revenues. The net changes in outlays that are subject to those
pay-as-you-go procedures are shown in Table 1.
Increase in long-term net direct spending and deficits: CBO
estimates that enacting S. 2351 would increase net direct
spending by less than $2.5 billion in any of the four
consecutive 10-year periods beginning in 2037.
CBO estimates that enacting S. 2351 would increase on-
budget deficits by less than $5 billion in any of the four
consecutive 10-year periods beginning in 2037.
Mandates: The bill contains no intergovernmental or
private-sector mandates as defined in the Unfunded Mandates
Reform Act.
Estimate prepared by: Federal Costs: Katherine Chou;
Mandates: Brandon Lever.
Estimate reviewed by: Ann E. Futrell, Chief, Natural and
Physical Resources Cost Estimates Unit; Kathleen FitzGerald,
Chief, Public and Private Mandates Unit; H. Samuel Papenfuss,
Deputy Director of Budget Analysis.
Estimate approved by: Phillip L. Swagel, Director,
Congressional Budget Office.

REGULATORY IMPACT STATEMENT

In accordance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee provides the
following evaluation of the regulatory impact of the
legislation, as reported:

Number of Persons Covered

S. 2351 would not create any new programs or impose any new
regulatory requirements and would not subject any individuals
or businesses to new regulations.

Economic Impact

S. 2351 is not expected to have an adverse impact on the
Nation's economy. The intent of the expanded lease authority
would be to develop long lasting partnerships that will build,
expand, modernize, or operate aerospace-related capabilities on
or near NASA property, providing the opportunity for job growth
and innovation thereby providing economic benefits for the
Nation.

Privacy

S. 2351 would not impact the personal privacy of
individuals.

Paperwork

The Committee anticipates a negligible increase in
paperwork burdens. The bill would levy a report, submitted
annually by the Administrator, that describes the number of
leases, their relevance to NASA's mission, and their value,
monetary or otherwise, to the center and agency.

CONGRESSIONALLY DIRECTED SPENDING

In compliance with paragraph 4(b) of rule XLIV of the
Standing Rules of the Senate, the Committee provides that no
provisions contained in the bill, as reported, meet the
definition of congressionally directed spending items under the
rule.

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