Mirror Review
August 11, 2025
Summary:
- NASA plans to cut $6 billion, about 24%, from its FY 2026 requested budget—from $24.8B to $18.8B.
- Around 20% of NASA’s workforce (3,000–4,000 employees) are leaving via voluntary programs and attrition.
When you hear about such a huge budget slash, it’s natural to ask: “Can NASA really survive when a fifth of its people and nearly a quarter of its budget vanish?”
To answer that, we have to understand how NASA funding really works.
Here’s a breakdown of the six key funding channels that keep NASA reaching for orbit, even when its budget is under fire.
6 Key Ways the U.S. Government Funds NASA
1. The Opening Bid: The President’s Budget Request
Every year, the funding process starts with the U.S. President. The White House proposes a budget for all federal agencies, including NASA. This is the opening number in a long negotiation.
- For Fiscal Year (FY) 2025, the request for NASA was $25.4 billion.
- For FY 2026, the President proposed a sharp reduction to $18.8 billion, a 24% cut.
This request is a statement of the administration’s priorities, but it’s just the first step.
2. The Final Say: Congressional Appropriations
The U.S. Constitution gives Congress the power to negotiate.
Lawmakers in the House of Representatives and the Senate debate, amend, and ultimately approve the final budget.
Often, Congress has different ideas from the President. Right now, Congress is pushing back against the proposed cuts:
- The House of Representatives aims to keep NASA’s funding at $24.838 billion.
- The Senate adds another $61 million, pushing it to about $24.9 billion— roughly matching FY 2025 levels.
This political tug-of-war shows that there is strong support in Congress to keep NASA’s funding stable.
3. The Temporary Hurdle: Continuing Resolutions (CRs)
Sometimes, Congress can’t agree on a final budget by the October 1st deadline. To avoid a government shutdown, they pass a Continuing Resolution (CR).
If new budgets aren’t approved on time, a CR keeps funding at the prior year’s level. This buys time but delays new plans.
4. Space Act Agreements & Public–Private Partnerships
NASA partners with companies like SpaceX under Space Act Agreements, paying for services like launches and cargo missions.
Under these deals, NASA pays a fixed price for services, such as launching astronauts to the International Space Station or sending cargo into orbit.
These agreements help keep operations running even if direct agency funding is cut.
5. Research Grants and Awards
Even with budget pressure, NASA continues to award competitive grants to universities, research institutes, and small businesses.
Programs like ROSES (Research Opportunities in Space and Earth Sciences) and SBIR/STTR (Small Business Innovation Research/Small Business Technology Transfer) are crucial for scientific discovery.
These grants ensure that new ideas and technologies keep flowing, supporting innovation districts and training the next generation of scientists and engineers nationwide.
6. Federal Contracts, Interagency Transfers & Political Support
NASA’s funding has a powerful, down-to-earth impact: jobs.
The money NASA spends on contracts for everything from rocket parts to software supports local economies across the country.
This spending is tracked on public sites like USAspending.gov. In FY 2023 alone, NASA’s activities generated an estimated $75.6 billion in economic output.
This creates powerful political support.
When a program faces cuts, members of Congress whose districts would lose jobs often fight to protect that funding.
This local leverage can help preserve key contracts and facilities, ensuring regional backing for NASA’s national mission.
So, Can NASA Survive the Cuts?
Yes, but it will be tough.
NASA’s real financial strength comes from its different funding sources. The political process in Congress often keeps the agency’s budget stable. Moreover, its partnerships with companies save money, and its deep ties to local economies give it powerful allies.
The loss of experienced people is a real problem, though. But the agency’s funding system is built to handle political challenges.
In conclusion, NASA’s mission continues not because of just one government check, but because it is a vital part of America’s economy, its spirit, and its bold future.
