Washington — Pentagon Backs Rocket Lab, Stoke Space Amid Launch Crunch

The Pentagon has committed $300 million in loans to two SpaceX competitors over the past two weeks, a sign military officials are worried about losing the Falcon 9 rocket as a steady ride to orbit, according to Ars Technica's reporting Tuesday.

The Department of Defense's Office of Strategic Capital (OSC) announced a $150 million conditional loan commitment to Stoke Space on October 26 and a second $150 million loan to Rocket Lab on Tuesday, Ars Technica reported. Both companies are now the first launch providers to receive significant OSC backing.

Why is the Pentagon worried about launch supply?

SpaceX has stopped taking new commercial orders for Falcon 9 launches after 2028 as the company shifts resources toward its larger Starship rocket, Ars Technica reported. Falcon 9 and Falcon Heavy flights for government customers, including NASA and the US Space Force, are expected to keep flying longer under existing contracts. The Space Force's current launch deal with SpaceX allows the military to place Falcon orders through 2029, with those missions flying as late as 2033, according to the report.

"Launch is extremely constrained and that is exactly the situation we predicted," the Ars Technica report states, describing the tightening supply of national security launch vehicles.

What is the Office of Strategic Capital?

OSC was created in 2022 to put capital into companies building technology the Pentagon considers vital to national security, Ars Technica reported. Beyond the two launch loans, the office has recently financed firms working on batteries, drones and semiconductors. In the space sector, OSC also issued a $150 million loan to LeoLabs, a satellite-tracking company, to help it build and deploy radar units, according to the report.

What happens to Falcon rockets after Starship takes over?

Starship may eventually carry national security payloads, but SpaceX's near-term plan is to use the rocket's cargo capacity for its own Starlink internet satellites and Starmind orbital data centers, Ars Technica reported. Once Starship is reliably meeting that workload, SpaceX intends to retire Falcon permanently.

Why does the military want more than one rocket company?

The Space Force has followed a policy called assured access to space since the 1990s, requiring the Pentagon to keep at least two American rocket programs capable of launching classified and military satellites, according to Ars Technica. That support has typically come as direct subsidies, development funding or launch contracts priced above market rate, giving the government oversight of a provider's technical progress and priority placement on its launch schedule. Today's mix of certified providers consists of SpaceX's Falcon family and United Launch Alliance's Vulcan rocket, the report said.

By the numbers

• $150 million: Pentagon loan to Stoke Space, announced October 26
• $150 million: Pentagon loan to Rocket Lab, announced November 10
• $150 million: Separate OSC loan to satellite-tracker LeoLabs for radar production
• 2028: Last year SpaceX will accept new commercial Falcon 9 orders
• 2029–2033: Window in which Space Force can still order and fly Falcon missions

What should industry watch next?

• Whether OSC extends similar loans to other launch startups beyond Stoke Space and Rocket Lab
• How quickly Stoke Space and Rocket Lab can reach operational launch cadence for national security missions
• Whether Starship clears the technical and certification steps needed to carry classified payloads
• Whether United Launch Alliance's Vulcan rocket can absorb additional Space Force missions as Falcon orders wind down

Full details on the loan terms and company statements are available in Ars Technica's original report.