US President Donald Trump’s proposed 2026 budget has sent shockwaves through the global space community by slashing NASA’s funding by nearly US$6 billion, representing a 24% reduction in its current $24.8 billion budget. The sweeping cuts threaten to cancel major pillars of the Artemis lunar exploration program—including the Space Launch System (SLS) and Orion capsule—while shifting financial and political momentum toward Mars-focused programs more aligned with the ambitions of SpaceX CEO Elon Musk.
The budget proposal, released Friday, represents a dramatic pivot in America’s space strategy, prioritizing cost-effective commercial ventures over legacy NASA infrastructure. If passed by Congress, it would terminate NASA’s Artemis heavy-lift SLS rocket and Orion spacecraft following Artemis III, slated for 2027, and redirect funding to support more flexible commercial options—particularly those offered by SpaceX and potentially Jeff Bezos’ Blue Origin.
“Grossly Expensive” Moon Rocket Under Fire
At the heart of the proposed budget cuts is the cancellation of SLS and Orion, two of NASA’s most iconic but controversial projects. The budget summary refers to both as “grossly expensive and delayed,” citing that SLS’s per-launch cost has ballooned to an estimated $4 billion, with total development expenditures surpassing $23 billion—140% over budget since its inception in 2010.
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While Artemis was originally championed by Trump’s first administration as a way to return humans to the Moon by the end of the decade—especially in the context of a global space race with China—the new proposal suggests a shift toward long-term Martian ambitions, effectively fulfilling a vision closely aligned with Musk’s.
“This budget phases out the SLS and Orion capsule after three flights,” the White House summary stated. “The Budget funds a program to replace SLS and Orion flights to the Moon with more cost-effective commercial systems that would support more ambitious subsequent lunar missions.”
Mars First: SpaceX’s Starship at the Center
One of the clear winners in Trump’s budget is SpaceX’s Starship, the centerpiece of Musk’s plan to colonize Mars. With a $1 billion boost allocated for “Mars-focused programs,” the administration signals its commitment to redirecting human spaceflight efforts toward the Red Planet.
Starship is already under contract with NASA to serve as a lunar lander for Artemis III, intended to land astronauts on the Moon in 2027. Under the new plan, Starship—and potentially other commercial launch vehicles—would likely replace SLS-Orion for future missions.
Trump’s relationship with Musk has grown significantly since his return to the White House. Musk, reportedly a top campaign donor, contributed $250 million to Trump’s 2024 election campaign. In turn, Musk’s strategic vision for space appears to be deeply influencing national policy.
Fallout for Contractors and International Partners
The budget changes would leave behind a trail of disrupted contracts and strained international relationships. Lockheed Martin, the builder of Orion, has active contracts extending through Artemis VIII, worth over $4 billion. Northrop Grumman, builder of the Gateway space station’s foundational module, recently delivered a unit valued at $935 million, with subcontractor Thales Alenia Space.
The proposed cancellation of Gateway, a key lunar orbiting platform that was to serve as a way station between Earth and the Moon’s surface, would have implications beyond NASA. The project involves contributions from Japan, Canada, and the European Space Agency (ESA), who have invested both financial and diplomatic capital in its success. Japan, in particular, had signed an agreement to place its astronauts on future Artemis missions—a plan now thrown into uncertainty.
“International partners will be invited to join these renewed efforts,” NASA said in a statement attempting to cushion the blow, adding that Gateway hardware might be “repurposed” for other missions.
Industry and Scientific Backlash
The proposal has drawn fierce criticism from space scientists, advocacy groups, and stakeholders who see it as a retreat from global leadership in space exploration and research. Most notably, the budget proposes a 47% cut to NASA’s science programs, imperiling a wide range of missions focused on Earth observation, climate monitoring, astrophysics, and planetary science.
“The Trump budget represents a historic step backward for American leadership in space science, exploration, and innovation,” said The Planetary Society, a nonprofit led by science educator Bill Nye. “This risks damaging decades of progress in both national and international scientific collaboration.”
Thousands of scientists and contractors around the world could see their work halted or defunded, as many projects rely on NASA’s funding backbone.
Political Realignment and Senate Confirmation in Focus
The budget announcement comes at a time of political reshuffling within NASA. Jared Isaacman, a private astronaut, billionaire, and SpaceX collaborator, is awaiting Senate confirmation as Trump’s nominee for NASA administrator. Isaacman has already hinted at aligning the agency’s goals with private spaceflight ventures and accelerating Mars missions.
During his recent confirmation hearing, Isaacman noted the need to “modernize NASA’s goals” and adopt “efficient, commercially available” technologies to ensure America remains competitive.
The Future of Artemis and Beyond
What lies ahead for Artemis is uncertain. While Artemis III appears safe under the current timeline—scheduled to land astronauts on the Moon using SLS, Orion, and Starship—any missions beyond that may be either scrapped or radically altered. The proposed pivot opens the door for commercial providers to build a new generation of Moon missions, potentially involving reusable vehicles, orbital depots, and robotic support infrastructure.
Still, experts warn that such a dramatic shift in funding and planning can delay progress.
“Commercial systems are promising but not a turnkey replacement,” said Dr. Tanya Jones, a space policy expert at MIT. “This will be a test of whether vision can outpace bureaucracy.”
As Take-Two Interactive, NASA’s parent agency, prepares to face congressional budget hearings in the coming weeks, industry analysts expect contentious debates. With multi-billion-dollar contracts, international alliances, and national prestige at stake, Trump’s space budget may prove to be one of the most consequential space policy decisions in decades.
