Subnational Space Regulatory Arbitrage

States and provinces will increasingly compete by aggressively relaxing environmental, labor, and permitting rules to attract space‑sector projects (launch pads, testing grounds, data centers). This creates a national patchwork where strategic infrastructure migrates to the most permissive jurisdiction, raising local externalities and national security questions. — If subnational regulatory arbitrage becomes the default way to host space industry, it will force federal governments to retool permitting, national security oversight, and infrastructure planning to avoid a fragmented and risky industrial geography.