The White House has released its budget proposal for fiscal year 2026, which includes a significant cut in NASA funding. The proposed 24% reduction would result in $18.8 billion for NASA next year, down from the current $24.8 billion.
The cuts will primarily affect Earth science and space divisions, with spending reductions of $1.2 billion and $2.3 billion, respectively. However, $7 billion will be allocated to lunar exploration programs, including Project Artemis, while an additional $1 billion will go towards sending missions to Mars.
A major change in the budget proposal is the plan to axe the Space Launch System (SLS), a critical component of NASA’s plans for returning humans to the moon. The SLS was deemed “grossly expensive and delayed,” with costs estimated at $4 billion per launch and 140% over budget. After two more launches, the SLS program will be phased out in favor of commercial systems like SpaceX and Blue Origin rockets.
The implications of this move are significant, particularly for Boeing, Lockheed Martin, and other contractors that rely on the SLS program. However, the shift to more cost-effective commercial options could ultimately benefit taxpayers and the space industry as a whole.
While the plan is still a proposal, its passage through Congress carries risks due to Republican control of both the White House and Congress. Ultimately, the fate of NASA programs will be decided by lawmakers.
Source: https://www.fool.com/investing/2025/05/17/trump-cut-budget-on-boeing-and-lockheed-space-prog