The U.S. Air Force awarded two private space companies an initial investment of $80 million.
SpaceX and Orbital ATK will receive funding to research separate rocket engines for military use.
Orbital ATK is working on a solid rocket engine that the company says will be low-cost and low risk.
SpaceX is getting at least $33 million to develop a reusable methane-fueled Raptor engine. SpaceX said it will manufacture most of the engine using 3D printed parts.
The Air Force is under pressure from Congress to end dependence on the Russian built RD-180 rocket engine by 2019.
