Investing.com -- Shares of space-related companies Intuitive Machines Inc (NASDAQ: LUNR ), Redwire Corp (NYSE: RDW ), and Rocket Lab USA Inc. (NASDAQ: RKLB ) are down 4.2%, 2%, and 1.7% respectively in today's trading session. The decline comes after news that the Trump White House has proposed significant budget cuts to NASA's fiscal-year 2026 funding, particularly targeting the Science Mission Directorate.

The draft budget suggests a 20% reduction in NASA's overall budget, amounting to a $5 billion decrease from the previous $25 billion. The Science Mission Directorate, responsible for planetary science, Earth science, and astrophysics research, faces a nearly 50% cut, which would bring its funding down from $7.5 billion to $3.9 billion.

In detail, the proposed budget would slash astrophysics funding by two-thirds to $487 million, heliophysics by more than two-thirds to $455 million, Earth science by over 50% to $1.033 billion, and planetary science by 30% to $1.929 billion. It would also terminate the Nancy Grace Roman Space Telescope project, despite it being on schedule and on budget for a launch in two years. Additionally, the cuts threaten to end the Mars Sample Return and the DAVINCI mission to Venus, and could potentially force the closure of the Goddard Space Flight Center in Maryland.

The proposed budget cuts have raised concerns about the future of space exploration and research, as well as the impact on companies that contract with NASA. The significant reduction in funding for science programs may result in decreased contracts and opportunities for these companies, which is reflected in the declining stock prices observed today.

The implications of these cuts are far-reaching, not only for NASA's scientific missions but also for the industry partners and the broader space sector. The market's response to the proposed budget reductions underscores the importance of government funding in the viability and growth of space-related businesses. As the budgeting process for fiscal-year 2026 continues, stakeholders in the space industry will be closely monitoring developments and potential impacts on their operations and financial outlooks.

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