Space Technology R&D (DRACO Nuclear Propulsion Cancelled)
(Space Technology)
NASAIn-space propulsion researchers; commercial space technology partners
Summary
NASA's Space Technology program funds early-stage research into new spaceflight capabilities, such as advanced propulsion, small spacecraft, and in-space servicing, often through partnerships with universities and small businesses. The FY2027 budget proposes cutting this program by $297 million, a 30% reduction, which the administration describes as nearly a third of what Congress approved for 2026. Part of this reduction locks in the cancellation of the DRACO nuclear thermal propulsion project, a joint NASA-DARPA effort to test a nuclear rocket engine in space.
Who Is Affected
The cut hits in-space propulsion researchers, NASA engineering centers, universities, and commercial space companies that rely on Space Technology contracts, including small businesses that compete for NASA's SBIR/STTR seed funding and 'Tipping Point' partnership awards. DARPA had already ended its side of the DRACO nuclear propulsion project in 2025, and NASA's budget documents formally zeroed out matching funding, ending work by contractor teams that had been developing the nuclear engine and demonstration spacecraft.
What this cut would actually mean
With DRACO cancelled and the broader technology portfolio shrunk by nearly a third, work on nuclear thermal propulsion, in-space sustainability, and other 'frontier' technologies would stop, and the contracts, university grants, and small-business awards that funded that research would end. The administration says remaining Space Technology dollars will be redirected mainly toward near-term lunar exploration hardware, so longer-range research that doesn't directly support Artemis Moon missions, like faster nuclear-powered trips to Mars, loses its main funding source and would need to wait for a future budget cycle or be picked up by another agency or private industry.
Sources
- White House again proposes steep NASA budget cuts — Reports that the FY2027 request cuts NASA space technology spending by $297 million, or nearly a third of the 2026 appropriation, redirecting funds toward lunar exploration technology and cutting projects like in-space sustainability.
- Trump FY2027 NASA Budget Supports Moon Missions, But Cuts Everything Else — Confirms the $297 million Space Technology reduction and states the funding that remains will prioritize early-stage R&D for future lunar missions and a competitive space industry.
- DARPA says decreasing launch costs, new analysis led it to cancel DRACO nuclear propulsion project — Explains that DARPA and NASA's joint DRACO nuclear thermal propulsion demonstration was cancelled, with NASA's FY2026 budget documents zeroing out its funding.
- Demonstration Rocket for Agile Cislunar Operations (Wikipedia) — Background on the DRACO program, a partnership between NASA and DARPA to flight-test a nuclear thermal rocket engine, and details of its cancellation.
- FY 2027 Budget Estimates, National Aeronautics and Space Administration — NASA's own FY2027 budget justification document detailing funding levels for Space Technology, including SBIR/STTR and space transportation technology lines.
Administration's Stated Rationale
“Space technology portfolio reduced; DRACO nuclear propulsion program cancelled.”