In a significant shift in U.S. space policy, NASA announced on Friday that it will retire the Space Launch System (SLS) rocket and Orion crew capsule following the Artemis III mission, citing proposed federal budget cuts outlined by the Trump administration.
The decision comes in response to the Fiscal Year 2026 Discretionary Funding Request, which identifies the Artemis program’s current launch infrastructure as excessively costly and behind schedule. According to the proposal, “The Budget phases out the grossly expensive and delayed Space Launch System (SLS) rocket and Orion capsule after three flights. SLS alone costs $4 billion per launch and is 140 percent over budget.”
Artemis III, expected to launch in 2027, will mark the final mission utilizing the SLS and Orion system. The mission is set to return Americans to the moon for the first time in over 50 years. Under the plan, NASA’s SLS rocket will launch the Orion capsule into lunar orbit, where it will dock with SpaceX’s Starship vehicle. Two astronauts will transfer to Starship for the moon landing, while the other two remain in orbit aboard Orion. After the surface mission is complete, Starship will return the crew to Orion, which will then bring them back to Earth. Starship will remain in space.
Despite the planned use of Starship for Artemis III, NASA has acknowledged that some delays in the Artemis program are linked to SpaceX’s challenges. Starship has yet to complete a fully successful test flight, contributing to timeline uncertainties.
The proposed budget also calls for the cancellation of NASA’s Gateway project, a small lunar space station designed to facilitate long-term exploration and serve as a platform for international astronauts.
In addition to cost concerns, the administration’s funding priorities are shifting toward geopolitical competition and long-term crewed exploration. The proposal emphasizes a renewed focus on surpassing China in the race to return to the moon and advancing toward a human mission to Mars. China has stated it plans to land astronauts on the moon by 2030.
The budget proposes cutting several other NASA initiatives, including the Mars Sample Return mission—a collaborative project with the European Space Agency aimed at retrieving soil and rock samples from the Martian surface. The proposal argues that such samples could instead be collected by American astronauts on future crewed Mars missions: “If American astronauts are on Mars, they can collect the samples themselves and return them to Earth.”
The Trump administration’s proposed budget also targets the Office of Science, Technology, Engineering, and Mathematics (STEM) Engagement. The document describes the STEM initiatives as “woke,” stating: “NASA will inspire the next generation of explorers through exciting, ambitious space missions, not through subsidizing woke STEM programming and research that prioritizes some groups of students over others and have had minimal impact on the aerospace workforce.”
To further reduce costs, the budget outlines plans to restructure NASA’s internal operations. “To achieve these objectives, the Budget would streamline the NASA workforce, information technology services, NASA Center operations, facility maintenance, and construction and environmental compliance activities,” it reads.
The proposed cuts and program changes are not yet final. Congress must vote to approve the budget, with the full U.S. Senate also required to pass the measure before it becomes law.
As the Artemis III mission approaches and budget deliberations continue, the future of American lunar exploration and broader space ambitions remains in flux, poised at the intersection of politics, economics, and innovation.