NASA Slashes $420 Million in Contracts Amid DOGE’s Broad Cost-Cutting Measures

NASA terminated $420 million in “unneeded contracts,” according to the Department of Government Efficiency (DOGE), an entity established by executive order to slash costs across the federal government.

The hundreds of millions in contracts are just the latest in a slew of cuts put into effect since the second Trump administration began in January. Many of the cuts have come in the form of layoffs, canceled grants, and terminated programs in the federal government’s science-focused agencies—from health, to weather, to natural resources.

DOGE, which is not a government department but has been given broad authority under Elon Musk to tighten the belt across governmental agencies, announced the cuts on X, which is owned by the billionaire.

In a statement delivered to SpaceNews, NASA press secretary Bethany Stevens said that “This streamlining effort ensures that taxpayer dollars are directed toward the highest-impact projects while maintaining NASA’s essential functions at the highest level of execution.”

Stevens joined NASA as its press secretary this month, after serving as press secretary to Texas’ Republican Senator Ted Cruz.

“In total,” Stevens added, “we are aiming for these measures to result in considerably more savings for the American people, reinforcing our commitment to efficiency, innovation, and continued leadership in space exploration.”

According to the X post, $45 million of the terminated $420 million was evenly split between three separate consultants for “Change Management Support Services.”

DOGE’s claims and the reality may be very different. In February, the so-called department claimed it saved tens of billions, though the number appeared to be a fraction of that. DOGE reported one contract to be worth $8 billion, though that contract’s actual cost was $8 million, as reported by The New York Times.

According to DOGE’s website, of the reported $44.5 million saved in 17 terminated NASA contracts, only $26.1 million was actually saved, as the other contracts had already been paid in full, as SpaceNews reported.  For all the purported savings being made by the department, there is a lack of clarity in the numbers they report.

Nevertheless, the Trump administration’s actions are driving a sea change in the cultural attitudes at federal agencies. In late January, NASA closed offices related to diversity, equity, inclusion, and accessibility and cancelled contracts related to the agency’s work. The space agency was named one of the best employers for diversity in 2023, though the January memo announcing the shift indicates that the agency is not immune from the Trump administration’s repeated calls to end programs making federal entities more equitable workplaces.

The NASA cost-cutting is happening lockstep with reported layoffs at the U.S. Food and Drug Administration, the National Oceanic and Atmospheric Administration, and the National Park Service. Bookings are down and cancellations are up at the national parks, as public interest in making visits has stalled in light of reported disruptions at many sites. Many federal employees—including meteorologists who model the impact of hurricanes on U.S. states—are in a holding pattern while their employment status makes its way through the court system.

It’s not immediately clear what specific NASA contracts were selected for termination, though it will take some significant—or many—programs to amount to DOGE’s purported $420 million in savings.