The Trump administration’s proposed 2026 budget introduces sweeping changes to NASA, marking the largest single-year funding cut in the agency’s history. Released on May 2, the proposal slashes NASA’s $24.8 billion budget by nearly 25%, or over $6 billion. It targets multiple high-profile programmes, cancelling or scaling back flagship moon initiatives while diverting funds to Mars exploration in line with the vision of SpaceX CEO Elon Musk.
The proposal phases out NASA’s Space Launch System (SLS) rocket and Orion crew capsule—built by Boeing, Northrop Grumman, and Lockheed Martin—after Artemis III in 2027. These were central to the Artemis programme, a multilateral effort to return humans to the Moon before China achieves the same milestone by 2030.
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NASA’s science programmes, including Earth and space science, would also take a hit, with a combined $3.5 billion in cuts. The Mars Sample Return programme and climate-monitoring satellites face immediate termination, and mission support and International Space Station funding would also shrink significantly.
Mars Over Moon
Despite the sweeping cuts, the proposal boosts NASA’s human exploration funding by $1 billion, focusing specifically on “Mars-focused programmes.” This shift signals an embrace of the long-term Mars colonisation vision advocated by Musk, who reportedly contributed $250 million to Trump’s reelection efforts.
“The Budget funds a programme to replace SLS and Orion flights to the Moon with more cost-effective commercial systems,” the summary reads. These systems are likely to be developed by SpaceX and Blue Origin, both already contracted for lunar landers. SpaceX’s Starship, which is already lined up to land astronauts on the Moon in 2027 under Artemis, is central to Musk’s Mars ambitions.
Trump’s NASA strategy seeks to leverage commercial innovation to reduce costs. The SLS has been criticised for its $4 billion-per-launch cost and a development budget of $23 billion since 2010—140% over budget.
Scrapping Artemis Staples
Artemis, a cornerstone of NASA’s recent lunar ambitions, faces a severe downgrade. Originally launched under Trump’s first administration, the programme was envisioned as a testbed for Mars, supporting international partnerships and long-term lunar presence.
Under the new proposal:
- SLS and Orion will be retired after Artemis II and III.
- Gateway, the planned lunar orbit station developed with international partners like Canada, Japan, and the European Space Agency, will be immediately cancelled.
- International cooperation agreements, such as Japan’s astronaut seat on a future Artemis mission, now hang in the balance.
Lockheed Martin and Northrop Grumman face potential contract terminations worth billions. Lockheed, for instance, is contracted through Artemis VIII, and has already begun building the Orion capsule for Artemis IV. Northrop, tasked with a Gateway module, had recently delivered it before learning the station would be scrapped.
Industry Shake-Up and Political Fallout
The redirection away from legacy NASA systems could benefit commercial launch providers like SpaceX, Blue Origin, and United Launch Alliance (ULA). While the SLS-Orion duo has flown only once—during Artemis I in 2022—SpaceX’s Starship and Blue Origin’s New Glenn are rapidly advancing in capabilities and funding appeal.
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However, the changes also face political scrutiny. Congress has long defended SLS and Orion due to job creation and existing contracts in key states. Critics, including The Planetary Society, called the cuts “a historic step backward” for U.S. space leadership. Meanwhile, NASA acting administrator Janet Petro acknowledged the “tough choices” ahead, urging staff to stay resilient amid the overhaul. Jared Isaacman, Trump’s nominee for NASA Administrator and a private astronaut with deep ties to SpaceX, is expected to spearhead this transition if confirmed by the Senate.