Wallops Island, Virginia – A new chapter in America’s space program is taking shape on Virginia’s Eastern Shore. Rocket Lab, a leading private space company, is planning a big infrastructure upgrade at Wallops Island to support its new Neutron rocket. This upgrade isn’t just about rockets—it’s about national security, smart investment, and making Virginia a key player in the space race.
Rocket Lab wants to build a new water channel called Sloop Gut, stretching about 5,300 feet long and 7 feet deep. This channel would let large rocket parts arrive by barge instead of traveling over highways. That’s especially important for Neutron, Rocket Lab’s much larger, reusable rocket designed to carry heavy payloads into orbit.
To make it happen, the project will remove over 59,000 cubic yards of sand and mud. The material will be sent to a disposal facility in Charles City County. The company has asked for special permits from local, state, and federal agencies, including:
A Section 404 permit under the Clean Water Act
A Rivers and Harbors Act permit
A Virginia Marine Resources Commission (VMRC) permit
An Accomack County Wetlands Board permit
A Virginia DEQ Water Protection permit
All these steps ensure that the environment is protected while the infrastructure is built.
The project will not harm historic sites and includes a plan to protect local wetlands. Rocket Lab and the Virginia Port Authority plan to buy conservation credits from the Virginia Aquatic Resources Trust Fund to offset any environmental impacts from the dredging.
Wallops Island is home to NASA’s Wallops Flight Facility and the Mid-Atlantic Regional Spaceport (MARS), a launch site operated in partnership with the Virginia Spaceport Authority (VSA). This facility has launched rockets for:
NASA
The Department of Defense
Commercial space companies like Rocket Lab
What makes Wallops so important? Its location—just a few hours from Washington, D.C.—makes it a vital part of America’s national security space strategy. If other launch sites are unavailable, MARS gives the U.S. military and NASA a backup option that’s close to key government agencies.
Virginia has already invested $30 million into MARS infrastructure and another $15 million into site upgrades, including a new rocket integration building used by Rocket Lab. These investments show the state is serious about building a strong space economy.
The Virginia General Assembly has stepped up with funding:
$7.5 million from the state’s general fund
$8 million from the Transportation Partnership Opportunity Fund
These funds support the Sloop Gut dredging project and help make Virginia a leader in space launch infrastructure.
The improvements at Wallops are more than just a Rocket Lab project—they're part of a much larger effort to boost America’s ability to launch rockets from multiple locations. That means more flexibility, more jobs in Virginia, and more opportunities for the next generation of scientists and engineers.
Rocket Lab launched its first U.S. mission from Wallops in January 2023.
Wallops Island has been launching rockets since 1945—it’s one of the oldest active launch sites in the world.
The Neutron rocket will be fully reusable, like SpaceX's Falcon 9, and could even support crewed missions in the future.