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" The commercial space launch industry is changing as NASA plans to begin procuring commercial cargo transportation services to the International Space Station later this year and companies are developing vehicles that could carry passengers for space tourism flights. FAA is responsible for overseeing the safety of commercial space launches and promoting the industry. A catastrophic commercial space launch accident could result in injuries or property damage to the public, or "third parties." In anticipation of such an event, launch companies are required to purchase launch insurance, per calculations done by FAA and, under the Commercial Space Launch Act, the federal government is potentially liable for claims above that amount of purchased insurance. Unless reauthorized, the indemnification provision expires this year. This testimony addresses (1) trends and forecasts in the commercial space launch industry and challenges FAA faces in overseeing and promoting the industry, (2) preliminary information on issues concerning federal indemnification for third party losses, and (3) challenges to global competitiveness for the U.S. commercial space launch industry. This statement is based on a past GAO report and testimonies on commercial space launches, updated with information GAO gathered from FAA and NASA on industry trends and recent FAA and NASA actions, and"