Your Guide to NASA's Budget

NASA's budget is set by an annual process that begins with a proposal from the White House and ends with legislation passed by Congress and signed by the President. The budget specifies funding amounts for programs and projects in human spaceflight, space science, aeronautics, technology development, and education.

NASA's budget peaked during the Apollo program in the 1960s. After the United States won the race to the Moon, space exploration lost political support and NASA's budget was cut significantly. Since the 1970s, NASA has hovered between 1% and 0.4% of all U.S. government spending.

NASA Budget Breakdown

NASA is internally divided into major program areas, each of which receives funding to manage its own projects. Funding varies year-to-year, but generally about 50% of NASA's annual budget is spent on human spaceflight activities, 30% on robotic missions and scientific research, with the remainder split between aeronautics, technology development programs, staff salaries, facilities management, and other overhead.

None of NASA's budget is used for national defense or intelligence gathering programs; it is a civilian agency responsible for the peaceful exploration of space. National security space programs are the responsibility of a handful of other agencies, most notably the Space Force and the National Reconnaissance Office.

How NASA's Budget Is Made

The White House provides a detailed budget proposal to Congress every February which kicks off an annual process known as appropriations.

The proposal that begins this process is called the President's Budget Request or PBR, which itself is the outcome of year-long negotiations, first within NASA and then between NASA and the White House's budget office. The President's Budget Request includes a justification and explanation for all of the space agency's activities. It can also contain proposals to cancel projects or to begin new ones. The priorities reflected in the budget request reflect that of the President, and the document can just as easily be read as a political statement by the executive branch.

The President's Budget Request does not carry the force of law and does not direct funding, though it does set the terms of the debate for funding legislation that is subsequently written by Congress.

Once the White House sends its budget proposal to Congress, key congressional committees in the Senate and the House of Representatives craft legislation to fund NASA. Through this process, Congress decides whether to accept or reject proposals contained in the President's Budget Request and whether congressional funding levels for NASA's programs and initiatives will match, exceed, or fall short of the levels proposed by the President.

The legislation must be passed by Congress and signed by the President before the start of the fiscal year on 1 October. If not, NASA loses its authority to spend money and cannot honor contractual obligations, provide paychecks, or otherwise function.

Note: Lessons 3 - 5 of The Planetary Society's free online course, Space Advocacy 101, explore this topic at greater depth.

NASA's Budget, Compared

The majority of spending by the United States government pays for social welfare programs and is not subject to annual congressional approval. This spending is referred to as "mandatory". Only about 30% of all U.S. government spending requires approval every year by Congress—a category of spending referred to as "discretionary". The Defense Department and related activities account for roughly half of all discretionary spending. All other government agencies and activities—including NASA—are funded from the remaining amount.

Where NASA's Budget Is Spent

NASA spends its money on Earth, not in space. NASA employs about 17,000 people and supports the employment of tens of thousands more through contracts and grants made in every state of the union. Last year NASA spent 73.5% of its total budget on contracts with nearly 5,000 businesses, nonprofit organizations, and educational institutions across the United States. NASA's major contractors—Boeing, Lockheed-Martin, SpaceX, and Orbital Sciences—are the biggest recipients of NASA funding, though they in turn work with many additional supplies and businesses.

The top 10 states by NASA contracted spending obligations in FY 2021. See the full list, including prior fiscal years, in this Google Spreadsheet. Source: NASA Procurement Data View/Casey Dreier.

Benefits of NASA

According to a report by The Tauri Group, NASA provides broad social and economic benefits to the United States. In particular, NASA:

• Supports technology development and skilled manufacturing, creating positive ripples throughout the economy larger than other federal agencies on average.
• Spurs innovation and business growth.
• Advances space-related industries and has made contributions that directly impact people every day: including the first weather satellites, telecommunications, remote sensing, and GPS technologies.
• Promotes international collaboration and supports peaceful foreign policy.
• Inspires people around the world; it is one of the best "brands" of the United States.
• Motivates and inspires people to pursue science, technology, engineering and mathematics (STEM) fields.

Planetary Society Coverage of Past NASA Budgets

FY2024 | FY2023 | FY2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 | FY 2014 | FY 2013

Resources

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