NASA has torn up $420 million worth of “unnecessary” contracts as part of a cost-cutting initiative launched by the Donald Trump administration. This was reported by the Department of Government Efficiency (DOGE), a structure created to optimize government spending under the leadership of Elon Musk. The decision was part of extensive changes affecting scientific institutions from health care to space exploration.
Since the beginning of 2025, hundreds of layoffs, grant and program cancellations have been initiated in federal agencies. DOGE, which has broad authority but is not an official department, claims billions of dollars in savings. However, the actual numbers are questionable. For example, of the $420 million in NASA, $45 million involved the services of three “change management” consultants. At the same time, the savings turned out to be much smaller: out of the announced $44.5 million, the real savings amounted to only $26.1 million, since some of the contracts had already been paid for.
NASA’s response
NASA press secretary Bethany Stevens (former representative of Republican Senator Ted Cruz) said the optimization would allow them to focus on critical projects. She also noted the continued leadership in the space industry. But critics point out that the cuts have impacted diversity and inclusion programs — NASA has closed relevant departments, although as recently as 2023, the organization was recognized as one of the most progressive employers.
Broader context
Similar changes occur at other institutions:
- The National Park Service records an increase in cancellations due to decreased funding.
- The National Oceanic Administration cuts the meteorological modeling important for hurricane forecasting.
- The FDA has suspended some of its product quality control programs.
Transparency issues
DOGE has been repeatedly accused of manipulating the numbers. For example, in February, the department claimed savings of $8 billion. But it later turned out that the total amount was actually $8 million. Such discrepancies cause concern, especially against the background of layoffs of thousands of civil servants whose status is still undefined.
It’s unclear exactly which NASA programs will remain unfunded. But the scale suggests that the cuts will affect key areas. Experts warn: over-optimization could undermine long-term research, particularly in climate and space technology.
Trump — Musk’s reforms provide shock therapy to federal agencies, but the price of “effectiveness” remains unclear. Will the millions saved become an investment in the future — or just a political gesture? The answer is not yet available.
We previously reported on how Trump used the rescue of the Starliner astronauts to raise his own ratings.
According to spacenews.com
