NASA is undergoing a significant restructuring, with acting administrator Janet Petro aiming to finalize a new “top-level” structure within weeks. This reorganization, underway since early March, considers three approaches: mission directorates, a center-centric model, or a “product line model.” The changes will primarily affect the agency's highest levels, leaving lower-level details for later.

A key element of the restructuring involves shifting responsibilities from NASA Headquarters in Washington D.C. to field centers. “We’re considering moving most functions currently being performed in D.C. out to where the work is being executed, and refocusing the work done in D.C. to setting strategic direction and engaging with our external partners,” Petro stated. This move follows the unexpected withdrawal of President Trump’s nomination of Jared Isaacman as NASA administrator, leaving Petro at the helm indefinitely. “I expect to finalize the top-level structure for this agency within weeks,” Petro confirmed, adding that a new administrator may not be in place until next year, a prediction echoed by NASA Chief of Staff Brian Hughes.

The proposed NASA fiscal year 2026 budget has sparked significant employee concerns, including potential layoffs. The budget proposes a nearly 25% reduction in overall funding, impacting science and space technology programs most heavily. A projected one-third reduction in the civil servant workforce, amounting to approximately 6,000 jobs, has led to widespread anxiety. Agency officials acknowledged the concerns, stating that the budget reflects broader governmental efforts to curb spending, citing the nation’s substantial debt. They emphasized their role as representatives of the executive branch limits their ability to influence the budget directly.

While officials insist no layoffs are currently planned, they are exploring cost-saving measures including a deferred retirement program. However, many employees remain skeptical given that the buyouts offered thus far represent only a small fraction of the proposed workforce reductions. The impact on contractors is expected to be even more severe, with Petro stating, “85% of our budget goes out the door to contractors. So, with a reduced budget, absolutely, our contractors will also be impacted. In fact, they’re probably the bigger driver that will be impacted.” Further, while the possibility of center closures hasn't been ruled out, it remains an ongoing discussion.

Congress is yet to review the proposed budget, and NASA will likely operate on a continuing resolution maintaining 2025 funding levels until a final budget is approved. Despite the higher funding in 2025, the agency plans to adopt a more fiscally conservative approach during the interim. “If we were to wait for all of the congressional process to unfold and get to final resolution to make any movements or do anything, it would probably be considered irresponsible,” Hughes noted.