How NASA fund cuts offer a chance for transformation |

NASA is facing an unprecedented budget crisis that threatens to reshape the agency dramatically. The White House’s fiscal year 2026 “skinny” budget proposal, released in May 2025, calls for a nearly $6 billion cut about 25% less than NASA’s 2025 funding. Science programs face the harshest blow with a proposed 50% reduction. Traditional pillars like the Space Launch System (SLS), Orion spacecraft, and the Gateway lunar outpost are set to be phased out or cancelled after the Artemis 3 mission. While these cuts spark concern, many experts see this moment as a rare opportunity to transform NASA into a leaner, more agile agency that can thrive in a new era of space exploration.

Historic scale of NASA fund cuts and their impact

The scale of these cuts is historic. Adjusted for inflation, NASA’s funding would revert to levels seen in the early 1960s, before the Apollo program. This level of reduction inevitably threatens thousands of jobs potentially up to 30,000 civil servants and contractors and imperils longstanding programs. The science division, responsible for some of NASA’s most high-profile missions, faces the largest reductions, with key projects like Mars Sample Return cancelled and others like NEO Surveyor in uncertain limbo. Space technology efforts critical to future lunar and Mars exploration are also slated for sharp cuts.

Uncertainty surrounding human spaceflight and the ISS

Despite the severity, NASA’s leadership has been cautious, awaiting full budget details to understand which missions might survive. The International Space Station (ISS), a symbol of international collaboration, faces cuts that could reduce crew size and accelerate retirement plans. More fundamentally, the budget signals that NASA will likely no longer operate human-rated spacecraft within five years, relying entirely on commercial providers for crew transport and exploration.

Challenges of a fully commercialised human spaceflight future

This potential “commercialization” of human spaceflight raises questions about NASA’s identity and public support. However, it also reflects a strategic shift that some argue NASA must embrace to remain competitive, particularly with China’s expanding lunar ambitions. Experts like Alex MacDonald of CSIS and Dan Dumbacher of the American Institute of Aeronautics and Astronautics highlight the risk of workforce erosion and industrial base losses similar to those seen after Apollo and the Space Shuttle programs.

Reinventing NASA through commercial partnerships

Yet, amid this crisis lies opportunity. Many voices in the space community emphasize that NASA’s traditional model is due for reform. The agency’s bureaucratic inertia and risk aversion have hampered agility and innovation. Leveraging commercial partnerships more deeply, as NASA did during the successful COTS program that birthed SpaceX’s cargo missions, could enable faster, cheaper, and more sustainable exploration.

Envisioning a lunar COTS model and international collaboration

Peter Garretson of the American Foreign Policy Council envisions a future where NASA acts as a central mission planner, outsourcing infrastructure development and operations to private firms through incentive-driven programs. This “lunar COTS” model could stimulate new industry growth, keep international partners engaged by shifting focus to lunar surface contributions, and streamline NASA’s core functions.

Turning crisis into long-term success

In sum, while the proposed 2026 budget presents severe challenges, it forces NASA to confront an urgent question: what should the agency look like for the next half-century? The difficult decisions ahead could break NASA free from outdated paradigms, enabling it to innovate, collaborate, and lead human space exploration in a more sustainable and impactful way. As MacDonald puts it, “There is a new NASA that can emerge one that leverages commercial capabilities, operates leaner, and continues to do amazing things.”NASA’s budget crisis, though painful, may be the catalyst for transformation the agency needs to remain a space exploration pioneer in the 21st century.