The FY 2026 budget proposed by the Trump administration could spell disaster for those employed at the Michoud Assembly Facility. The budget includes cutting 25% from NASA’s budget and phasing out the Space Launch System rocket and Orion spacecraft, both of which are constructed at the Michoud Assembly Facility (MAF) in New Orleans.
“The Budget phases out the grossly expensive and delayed Space Launch System (SLS) rocket and Orion capsule after three flights,” the budget document states. “The Budget funds a program to replace SLS and Orion flights to the Moon with more cost-effective commercial systems that would support more ambitious subsequent lunar missions.”
These statements are in direct contradiction to previous NASA statements on the Artemis and SLS rocket. In a February press release, the U.S. space agency stated that “NASA’s SLS rocket is an essential component of the agency’s Artemis campaign. NASA and its industry partners continuously work together to evaluate and align budget, resources, contractor performance, and schedules to execute mission requirements efficiently, safely, and successfully in support of NASA’s Moon to Mars goals and objectives.”
The Artemis II Boeing SLS rocket was delivered to NASA’s Kennedy Space Center in July 2024 in preparation for its anticipated launch in April 2026. Lockheed Martin delivered the Orion crew capsule for the Artemis II mission on May 1. Construction of Artemis III’s SLS rocket is currently anticipated to wrap up in late 2025 according to sources inside MAF. It’s unclear what would happen to employees on the project once that happens.
MAF currently supports more than 5,000 jobs in Louisiana and Mississippi and generates more than $107 million in federal, state, and local taxes annually. The phase out of the SLS and Orion programs could result in thousands of layoffs. This comes after hundreds have already been laid off by Boeing (the contractor responsible for the SLS program) in recent months. In February, Boeing warned that it planned to lay off around 400 employees working on the Artemis program by April 2025 after laying off 141 employees on the program in December. While it’s unclear how many employees remain on the program nationwide, it’s assumed they also face layoffs should the program be discontinued.
Nationally the Artemis program has faced increasing scrutiny due to massive budget overruns and the program has been plagued by delays. In August 2024, following the disaster-plagued launch of Boeing’s Starliner capsule, NASA’s Office of Inspector General issued a scathing report saying that a “lack of a sufficient number of trained and experienced aerospace workers” at the Michoud Assembly Facility “increases the risk that Boeing will continue to manufacture parts and components that do not adhere to NASA requirements and industry standards.”
Space industry reports now speculate that NASA will pivot its focus to Starship, the vehicle currently being constructed by Trump associate Elon Musk, who also heads the Department of Government Efficiency (DOGE). DOGE is responsible for over 216,000 firings of federal workers and contractors so far. However, Starship has had its own problems. Just two days ago, SpaceX postponed its ninth test flight after an explosion during static fire testing at the company’s Starbase facility in Texas. Starship vehicles have launched eight times with only four successful flights so far. Additionally, last year, Musk disclosed that Starship currently underforms on payload delivery to orbit by 50%.
