Hard times for the Space Coast’s local economy might be ahead.
The Administration’s proposed fiscal year 2026 budget includes a 24.3% reduction in NASA’s funding, decreasing the agency’s budget from $24.8 billion to $18.8 billion. This so-called “skinny” budget blueprint is a high level one short of full details, which will be forthcoming. After that, Congress will take up and begin debate on a budget bill.
This proposed significant cut threatens to eliminate key programs and could result in substantial job losses at Florida’s Kennedy Space Center (KSC), a cornerstone of the Space Coast’s economy, and that will have ripple effects that everyone who lives in the region will feel.
Key Programs on the Chopping Block
The proposed budget aims to terminate NASA’s Space Launch System (SLS) and the Orion crew capsule after the Artemis III in 2027. SLS is integral to the Artemis initiative, which seeks to return humans to the Moon. The administration justifies these cuts by citing cost overruns and delays, noting that the SLS has cost approximately $23 billion since 2010 and about $4 billion per launch.
These are good points, SLS is indeed a byproduct of old Department of Defense-style procurement methods where money was seemingly no object and that is unsustainable for the American taxpayer.
In addition to the SLS and Orion, the budget proposes eliminating the Gateway lunar station and the Mars Sample Return mission. These cuts would not only affect NASA’s long-term exploration goals but also disrupt international collaborations with agencies from Europe, Canada, and Japan.
Conventional wisdom in space circles is that SpaceX’s Starship program will replace SLS, and will rely on Kennedy as one of SpaceX’s primary launch sites for the giant rocket still under development in Texas. That will offset some of the job losses locally, but it is unlikely to replace them fully.
Impact on Kennedy Space Center and the Space Coast
In fiscal year 2023, NASA activities in Florida supported 35,685 jobs and contributed $8.2 billion in economic output. The proposed budget cuts threaten to drastically lower this economic contribution, leading to job losses and decreased economic activity in the region.
Kennedy Space Center is a major economic driver on the Space Coast, supporting over 27,000 jobs. Terminating the SLS would directly impact thousands of workers involved in these projects. NASA will undoubtedly trim jobs, as will Jacobs and Bechtel, who employ hundreds at the center. Moreover, the ripple effects could extend to local businesses and suppliers that rely on NASA contracts.
The Space Coast has been through this before: in the 1970s after the Apollo program was ended and after the Space Shuttle program flew its last flight in 2011. Home prices tumbled due to local oversupply, local businesses and restaurants shuttered thanks to a drop in the number of customers coming through their door.
Concerns from Local Leaders and Experts
A local resident who works for NASA but didn’t want to share their name said yesterday that “This will be like it was in the 70s after Apollo and fifteen years ago after the Shuttle. Home values dropped, and some people just left and let the bank foreclose their homes. It was ugly.”
Indeed, the conclusion of NASA’s Space Shuttle program in 2011 marked a significant turning point for Brevard County’s economy. The retirement of the shuttle led to the loss of approximately 7,000 jobs at Kennedy Space Center alone, with estimates of up to 9,000 when including contractors and support staff.
This sudden unemployment surge pushed the county’s jobless rate to over 11%, far surpassing the state average at that time. Local businesses, from restaurants to retail stores, felt the ripple effects as disposable incomes dwindled. The housing market also suffered, with property values declining and foreclosures increasing. The economic downturn lingered for years until the rise of SpaceX, the arrival of Blue Origin and NASA’s Artemis Project.
Titusville, often referred to as the “Gateway to Space,” bore the brunt of the shuttle program’s end. The city’s economy, deeply intertwined with space exploration, faced significant challenges. The closure of the Miracle City Mall in 2013 symbolized the broader economic decline. Local schools saw decreased enrollment, and businesses shuttered due to reduced consumer spending. The community grappled with an identity crisis, striving to redefine itself beyond its space-centric legacy. Efforts to attract new industries and promote tourism began, but the transition has proven arduous and ongoing, especially given that Titusville lost most of its beach access when those beaches were seized by the federal government in the early 1960s to build Kennedy Space Center.
Local entrepreneurs and small business owners in Brevard County faced unprecedented challenges following the shuttle program’s end. Businesses that thrived on the patronage of NASA employees and tourists experienced sharp declines in revenue. For instance, Space Shirts, a long-time memorabilia store in Merritt Island, saw a significant drop in sales as shuttle launches ceased. Many businesses were forced to downsize or close entirely.
Industry experts have expressed alarm over the proposed budget cuts. They argue that reducing NASA’s funding could have long-term detrimental effects on the nation’s space leadership and the economic well-being of communities like the Space Coast.
“The proposed cuts could plunge NASA into a dark age,” warns the Planetary Society, emphasizing the potential loss of scientific progress and the soft power of international prestige that comes from NASA being one of the world’s technological pioneers.
Congressional Response and Next Steps
The budget proposal is subject to approval by Congress, where it is expected to face significant scrutiny and potential revisions. Lawmakers from both parties have historically supported NASA’s missions and may push back against the proposed cuts to preserve the agency’s programs and the jobs they support.
As the budget process unfolds, stakeholders from the Space Coast and beyond will be closely monitoring developments, advocating for the preservation of programs vital to the nation’s space exploration efforts and economic health.
