The Resiliency of the Space Industry

By: Jeff Carr, President

The 2026 NASA Presidential Budget Request (PBR) is raising serious red flags among scientists, engineers, and space businesses who are gravely concerned that the proposed cuts will undermine the progress of flagship programs and lose international partners to our adversaries, essentially ceding our human space leadership position and customers to China.  

This isn't the first time NASA and the space industry have faced financial or political turbulence—and it won’t be the last. Time and again, NASA and the space industry have shown their ability to partner, adapt and advance when faced with adversity.  

When Apollo funding came to an end, NASA shifted focus to long-term infrastructure and operational capability leading to programs like Shuttle and ISS which catalyzed public-private cooperation. Even the setbacks of the Challenger and Columbia disasters, the cancellation of the Constellation program, and temporary reliance on Russian launch vehicles didn’t halt progress. Instead, they prompted necessary course corrections, over time fostering a more robust, diversified space ecosystem. 

These historical pivots weren’t just recoveries. They became launchpads for new eras of progress. What seemed like setbacks turned into opportunities to innovate and realign space exploration with new realities. This historical pattern is repeating today. While the 2026 budget request may be unreasonably “skinny” as presented, it may also be a moment to evolve.  

What is sorely needed today is a blueprint for a rapidly evolving space ecosystem that now consists of more than just NASA. It includes multiple state and federal government agencies, commercial space companies, investors, suppliers, universities and customers. In a clear and stable policy environment, partnerships flourish, innovation blossoms, and progress is steady. 

At the same time, national defense priorities are driving substantial R&D and capital into the space sector and pushing the boundaries between civilian and military applications closer together. Commercial companies can expect new opportunities with national defense and security priorities significantly shaping the future of the space industry in several ways right now. For example, agencies like the U.S. Space Force, NASA and DARPA are working closely with commercial players on space-based sensors to track fast-moving, hard-to-detect threats. This kind of collaboration accelerates innovation, spurs dual-use technology development and encourages industry to develop interoperable platforms for government use. 

However, all of this does not mean a 24% budget reduction is acceptable. A far too “skinny” budget right now could threaten plans for lunar exploration, Mars readiness, and scientific discovery. Furthermore, NASA activities support an estimated $75.6B in economic output and more than 304,000 jobs and $9.5B in state and local tax revenue. These impacts are felt in every state across the nation. So don’t expect Congress or industry to go quietly along.

The message should be amplified by all. Space is not an expense - it is a critical investment in science, security, and the economy that we cannot afford to starve. We need to treat the 2026 Presidential Budget Request as a wake-up call - not a death knell. 

Ultimately the key to success may be increasingly deep collaboration across the space ecosystem. By combining NASA’s experience and infrastructure with the urgency of national security and defense, and the agility of commercial space companies, the United States can maintain momentum in exploration, science, and economic development in space while keeping America safe.  

Yes, the belt is tightening.  But, if past is prologue, a familiar story is likely to emerge - one of resilience, innovation, and partnership. This budget request has a long way to go before becoming policy. And America’s space ecosystem is resilient enough - if united enough - to rise to the challenge once again.