Pentagon bets $450M on US rocket startups to fill SpaceX gap

The Pentagon's Office of Strategic Capital has issued three loans totaling $450 million to US space companies to boost America's launch capacity. The funds are split: $150 million to Rocket Lab to accelerate flight rates of its delayed Neutron rocket, another $150 million to startup Stoke Space for a second launch pad at Cape Canaveral, and a third $150 million to an unspecified company. This financial push comes as the Defense Department anticipates a major launch shortage after 2028 when SpaceX stops flying commercial payloads on Falcon 9.

The investment aims to bridge a projected gap where an independent report forecasts a shortfall of at least 150 military and commercial launches by 2030. Both Rocket Lab's Neutron and Stoke Space's Nova rockets have faced delays, with first launches now pushed to 2026 and 2027 respectively. For engineers and the space industry, this means more resources and pressure to deliver reliable medium-lift alternatives. The takeaway: national security now hinges on successfully nurturing homegrown rocket competitors before a looming launch crunch hits.