Office of the Governor Rick Perry

Gov. Perry Announces State Incentives Bringing SpaceX Commercial Launch Facility, 300 Jobs to the Brownsville Area

Monday, August 04, 2014  •  Austin, Texas  •  Press Release

Gov. Rick Perry has announced the state is offering $2.3 million from the Texas Enterprise Fund (TEF) to bring SpaceX's commercial rocket launch facility to Cameron County. Contingent upon final approval of local agreements and receipt of additional required permits, this facility will create 300 jobs and pump $85 million in capital investment into the local economy.

"Texas has been on the forefront of our nation's space exploration efforts for decades, so it is fitting that SpaceX has chosen our state as they expand the frontiers of commercial space flight," Gov. Perry said. "In addition to growing the aerospace industry in Texas, SpaceX's facility will provide myriad opportunities for STEM education in South Texas, and inspire a new generation of Texas engineers and innovators."

The State of Texas and SpaceX first discussed this potential project in the spring of 2011 during a TexasOne mission to California. The governor has since met with SpaceX founder Elon Musk and provided letters in support of SpaceX's efforts to get FAA clearance for the site. Governor's Office staff has worked closely with local officials in South Texas throughout the process, and also testified before the FAA in support of bringing the project to Texas.

In addition to the TEF investment, the state is also offering $13 million from the Spaceport Trust Fund to the Cameron County Spaceport Development Corp. The fund is used to support the development of infrastructure necessary for establishing a spaceport.

SpaceX designs, manufactures and launches advanced rockets and spacecraft, and is the world's fastest-growing provider of launch services. It is the only private company ever to return a spacecraft from low-Earth orbit, which it first accomplished in December 2010. SpaceX is also the first private company to attach a spacecraft to the International Space Station, exchange cargo payloads, and return safely to Earth - a technically challenging feat previously only accomplished by government space programs. SpaceX operates a Rocket Development Facility in McGregor, Texas which has grown to over 250 employees since starting operations in 2003. The Brownsville facility will launch commercial satellites.

"SpaceX is excited to expand our work in Texas with the world's first commercial launch complex designed specifically for orbital missions. We appreciate the support of Gov. Perry and numerous other federal, state and local officials who have partnered with us to make this vision a reality," SpaceX CEO Elon Musk said. "In addition to creating hundreds of high tech jobs for the Texas workforce, this site will inspire students, expand the supplier base and attract tourists to the south Texas area."

Texas has a long history with both public and private spaceflight. NASA's Johnson Space Center served as a hub for America's human space exploration program from the early Gemini, Apollo and Skylab projects to today's Space Shuttle and International Space Station Programs. Texas was also the launch site for the Conestoga 1 in 1982, one of the first privately funded rockets to reach space.

"What a historical moment for the greater Brownsville region and the State of Texas. It's the culmination of a dream and a vision that began more than three years ago," Brownsville Mayor Tony Martinez said. "We will ensure that SpaceX has everything they need in order to be successful in the Greater Brownsville Borderplex. The team effort would have never succeeded but for the immense support of the people of Brownsville, all of its surrounding neighbors and the state - to all of you ‘mil gracias' and watch us soar."

The Legislature created the TEF in 2003 and reauthorized funding in 2005, 2007, 2009, 2011 and 2013 to help ensure the growth of Texas businesses and create more jobs throughout the state. TEF projects must be approved by the governor, lieutenant governor and speaker of the House. The fund has since become one of the state's most competitive tools to recruit and bolster business.

To date, the TEF has invested more than $565 million and closed the deal on projects generating nearly 76,000 jobs and more than $24 billion in capital investment in the state.

CRS-3 Falcon 9 Liftoff (Photo Courtesy SpaceX)
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