In a recent town hall meeting, NASA's acting administrator, Janet Petro, revealed that she expects to finalize a new “top-level” structure for the agency within the coming weeks. However, the process of appointing a Senate-confirmed administrator may extend into next year. This announcement comes as NASA navigates significant changes, including potential budget cuts and organizational restructuring.
During the town hall held on June 25, 2023, Petro discussed her efforts to reorganize NASA, stating, “I expect to finalize the top-level structure for this agency within weeks.” She noted that the reorganization process has been ongoing since early March and is focused on how the agency is structured and the lines of reporting within it.
Three approaches are being considered for NASA's reorganization: the first would maintain the current structure through mission directorates, while the second would adopt a “center-centric” model focused on field centers. The third approach suggests a “product line model,” although Petro did not provide further details on what this would entail. She clarified that this reorganization would not affect operations below the center level, stating, “After we’ve selected this high-level structure, then we will begin to define those details of the organization at the lower level.”
A significant shift expected from this reorganization is the relocation of many functions currently performed at NASA Headquarters in Washington, D.C., to the field centers. Petro highlighted the need to redirect the focus of the D.C. office towards setting strategic direction and engaging with external partners.
Most anticipated that Janet Petro, who has served as acting administrator since President Trump took office on January 20, 2023, would soon be succeeded by a new appointee. However, following the withdrawal of Jared Isaacman's nomination by President Trump on May 31—a move reportedly tied to conflicts between Trump and Elon Musk—Petro remains at the helm. Brian Hughes, NASA's chief of staff, indicated that the confirmation process for a new administrator could take until next year, suggesting a timeline of six to nine months.
Despite the uncertainty surrounding the leadership, Petro reassured NASA employees of her commitment, stating, “I will continue to lead NASA until a new leader is installed, and I take that responsibility to heart.”
Significant concerns raised during the town hall included the agency's budget and the potential for layoffs, formally referred to as a reduction in force (RIF). NASA’s fiscal year 2026 budget proposal suggests a nearly 25% cut in its overall budget, with even steeper reductions for science and space technology sectors. The proposal also anticipates a reduction of the agency's civil servant workforce by approximately one-third, equating to around 6,000 jobs.
NASA leadership defended the budget cuts as part of broader government efforts to manage national debt, which currently exceeds $36 trillion. Hughes emphasized the necessity for NASA to concentrate on its core mission while operating under tighter fiscal constraints. “This is why NASA is being challenged to focus on its core mission and work within tighter fiscal restraint,” he noted.
Vanessa Wyche, acting associate administrator, mentioned that NASA would explore partnerships as a means to stretch its budget, aiming to “increase what we have and do more with it.” In response to concerns about the science budget, which is proposed to be cut by 47% to $3.9 billion, Petro asserted, “There’s still $4 billion. There’s a lot of science that can still be done with $4 billion.”
While NASA officials have stated that they are not currently planning layoffs, concerns linger among employees regarding the potential for workforce reductions. The agency is conducting a second round of a deferred retirement program, with 1,500 employees already signed up ahead of the July 25 deadline. Casey Swails, NASA deputy associate administrator, reiterated that there are no plans for layoffs, although she acknowledged that contractors would likely face job losses due to budget reductions.
“Eighty-five percent of our budget goes out the door to contractors. So, with a reduced budget, absolutely, our contractors will also be impacted,” Petro stated. She emphasized that the agency is actively considering the implications of the budget cuts on operational centers but has not made definitive decisions regarding closures.
As of now, Congress has yet to address NASA's budget proposal, with House appropriators expected to discuss a spending bill that funds NASA in early July. The appropriations process is expected to extend beyond the start of the 2026 fiscal year on October 1, which will likely result in NASA operating under a continuing resolution (CR) that maintains funding at the 2025 levels. Hughes noted that despite the higher funding levels for 2025, NASA will need to prepare for operations under the proposed lower budget levels.
In conclusion, the upcoming weeks are crucial for NASA as the agency embarks on a significant reorganization while grappling with financial constraints and an uncertain leadership structure. The decisions made during this time will undoubtedly shape the future direction of the agency and its workforce.
