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Rising Home Insurance Premiums Are Eating Into Home Values in Disaster-Prone Areas

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Rising Home Insurance Premiums Are Eating Into Home Values in Disaster-Prone Areas

This Louisiana resident expects to pay 45 percent more for home insurance this year.

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Similar increases are hitting homeowners across the state, where insurance costs have exploded over the past four years.

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It’s part of a rapid shift that’s sending tremors through real estate markets across the country.

Even after she escaped rising floodwaters by wading away from her home in chest-deep water during Hurricane Rita in 2005, Sandra Rojas, now 69, stayed put. A fifth-generation resident of Lafitte, La., a small coastal community, she raised her home with stilts.

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But this year, her annual home insurance premium increased to $8,312, more than doubling over the past four years.

She considered selling, but found herself in a dilemma. As insurance costs have risen, area home values have fallen, dropping by 38 percent since 2020. The roadsides around her house are dotted with for-sale signs.

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“They won’t insure you,” Ms. Rojas said. “No one will buy from you. You’re kind of stuck where you are.”

Sandra Rojas is a fifth-generation resident of Lafitte, La.

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New research shared with The New York Times estimates the extent to which rising home insurance premiums, driven higher by climate change, are cascading into the broader real estate market and eating into home values in the most disaster-prone areas.

The study, which analyzed tens of millions of housing payments through 2024 to understand where insurance costs have risen most, offers first-of-its-kind insight into the way rising insurance rates are affecting home values.

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Since 2018, a financial shock in the home insurance market has meant that homes in the ZIP codes most exposed to hurricanes and wildfires would sell for an average of $43,900 less than they would otherwise, the research found. They include coastal towns in Louisiana and low-lying areas in Florida.

Changes in an under-the-radar part of the insurance market, known as reinsurance, have helped to drive this trend. Insurance companies purchase reinsurance to help limit their exposure when a catastrophe hits. Over the past several years, global reinsurance companies have had what the researchers call a “climate epiphany” and have roughly doubled the rates they charge home insurance providers.

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Source: Keys and Mulder (National Bureau of Economic Research, 2025). The New York Times

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Benjamin Keys at the Wharton School of the University of Pennsylvania and Philip Mulder of the University of Wisconsin-Madison, the authors of the study, which was published this week, have called these swift changes “a reinsurance shock.” For some Americans, these changes have made it unaffordable to remain in homes they have lived in for decades.

“Homeowners don’t appreciate or don’t understand that we are living in a much riskier world than we were 25 years ago,” Dr. Keys said. “And that risk? They have to pay for it.”

After analyzing 74 million home payments — which included mortgage, taxes and insurance and were made between 2014 and 2024 — the researchers found that a rapid repricing of disaster risk had been responsible for about a fifth of overall home insurance increases since 2017. Another third could be explained by rising construction costs.

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The researchers estimated the effects of the reinsurance shock on home prices in the ZIP codes most vulnerable to catastrophes. They found that rising insurance premiums weighed down home values by about $20,500 in the top 25 percent of homes most exposed to catastrophic hurricanes and wildfires, and by $43,900 in the top 10 percent.

Buying a home has long been seen as a way to lock in predictable housing costs. But the fast-increasing burden of insurance is catching some homeowners by surprise.

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Last year, Ms. Rojas’s brother-in-law, who lived down the road in Lafitte, decided to sell his home to escape the area’s rising premiums. It sold for $150,000, which is what it cost him to build it in 1984. He estimated he lost about $75,000 on the sale, after accounting for the cost of renovations.

In parts of the hail-prone Midwestern states, insurance now eats up more than a fifth of the average homeowner’s total housing payments, which include mortgage costs and property taxes. In Orleans Parish, La., that number is nearly 30 percent.

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Source: Keys and Mulder (National Bureau of Economic Research, 2025). The New York Times

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A hundred miles north of Lafitte, the small city of Bogalusa, La., lies further inland. Nevertheless, Cristal Holmes saw her insurance premium more than quadruple in 2022, to $500 per month, on top of her $700 monthly mortgage.

Ms. Holmes, a single mother who was working 56 hours a week at a warehouse, struggled to keep up with the higher bills. She fell behind on mortgage payments after her work hours were reduced to 35 per week. She worried she couldn’t stay in her home.

Similar stories are playing out all over town. Ms. Holmes’s real estate agent, Charlotte Johnson, said her office was getting phone calls every day from people who said they could no longer afford their rising insurance premiums. For many, dropping insurance is not an option, because banks refuse to offer or maintain mortgages for people without coverage.

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That means owners are being forced to choose between accepting home insurance policies they can’t afford or risking foreclosure.

Buyers face their own obstacles. High insurance prices and interest rates are making it harder than ever for first-time buyers to purchase homes, said Nancy Galofaro-Cruse, a senior loan officer with CMG Home Loans who works with many of Ms. Johnson’s clients. She estimated that more than a third of would-be buyers in the area backed out of the market this year after insurance and interest rates pushed their total monthly housing costs out of reach.

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For-sale signs dot roadsides In Lafitte, La., where high insurance costs have driven residents to sell.

It’s not just the hurricane-prone coasts that have been affected by the reinsurance shock. In Colorado, where wildfires and hail pose the biggest threats to homes, the average homeowner’s premium has more than doubled in the last decade and median premiums have increased 74 percent since 2020.

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Steve Hakes, an insurance broker with Rocky Mountain Insurance Center in Lafayette, Colo., has seen clients consider homes in wildfire-prone areas, only to back out when they can’t find affordable insurance. High prices and limited availability have pushed him to advise buyers to look for insurance early in the homebuying process.

And in California, 13 percent of real estate agents surveyed by an industry trade association said they’d had deals fall through in 2024 after buyers couldn’t find affordable insurance coverage.

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Colorado regulators are aware of the threats these dynamics pose to the real estate market and are exploring a wide range of fixes, said Michael Conway, the Colorado insurance commissioner.

“We don’t want a situation where the insurance market is effectively decimating the real estate market,” he said.

As insurance becomes more expensive, home values will need to adjust for potential buyers to afford their monthly costs, industry analysts say. And if home values fall, lower property tax revenue could mean less money for local governments to pay for essential services or affect the ability of those governments to borrow money.

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Clarence Guidry reached a breaking point this year when he got a quote to insure his home in Lafitte, La. He’d pay a $20,000 annual premium but if a hurricane struck, he’d be on the hook for the first $50,000 in damage before the insurance company would pay out.

His lender wouldn’t let Mr. Guidry, who goes by Rosco, keep his mortgage without home insurance. But keeping his home insured against damage from hurricanes would mean stomaching monthly payments that are at least 40 percent higher than the rest of his monthly mortgage and property taxes combined.

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Clarence Guidry, a homeowner in Lafitte, La., would need to cover the first $50,000 in hurricane damage before his home insurance would kick in.

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Over the last decade, as the number of wildfires and storms has mounted, losses have exceeded the revenue insurance companies receive from home insurance policies across the United States. In Louisiana, 12 companies, including Mr. Guidry’s insurer, became insolvent after a wave of hurricanes between 2021 and 2023. (Most private insurers do not cover flood damage, which is handled separately under a federal program.)

Note: Data shows U.S. property catastrophe prices indexed to 1990. Source: Guy Carpenter. The New York Times

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Insurance companies’ own costs have climbed in recent years for a variety of reasons, including higher construction costs, higher interest rates and President Trump’s tariff policies.

But the changes in the insurance market have begun to put a higher price on risk. Reinsurers have been driving these effects, Dr. Mulder said.

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“These reinsurers are looking at a lot of the same data as insurers, but at a much bigger scale and with more sophistication,” he said.

Politicians, homeowners, economists, state insurance commissioners and real estate agents have long worried that insurance costs will rise so much that they will begin to pull down home values.

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According to the study by Dr. Keys and Dr. Mulder, which was published as a working paper in the National Bureau of Economic Research, this is already happening in some areas.

Jesse Keenan, an associate professor of sustainable real estate and urban planning at Tulane University, said the direct evidence of this phenomenon remained limited and there were factors beyond insurance that affected local home prices.

But there are increasingly troubling signs in some markets, he said.

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“The New Orleans housing market is exhibiting signs of failure that are imposing stress on the financial system around it,” he said.

Overall, U.S. home prices have risen about 55 percent since 2018, but New Orleans prices have increased by only 14 percent, less than the rate of inflation over the same time period.

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Note: Chart shows change in Zillow Home Value Index since 2018. Source: Zillow. The New York Times

Even in states where heavy regulations have kept costs down, there are signs that home insurers will continue to raise premiums to align more closely with disaster risk. New rules in California allow insurance companies to pass rising reinsurance costs on to consumers. One consumer advocacy group, citing the effects of similar changes in other states, has estimated this provision could raise net premiums significantly for homeowners.

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Back in Lafitte, Mr. Guidry was running the numbers for his own budget. Against the advice of his financial adviser, he took money out of his retirement account to pay off his home loan. The plan now is to self-insure for wind and hail damage. That means he and his wife will have to pay out of pocket to repair their home if another severe storm hits.

In forgoing coverage, the Guidrys join some 13 percent of U.S. homeowners who are uninsured, according to Census Bureau data. Insurers continue to drop people in many areas.

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“Now, we’ve got to take the gamble,” Mr. Guidry said.

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Methodology

Benjamin Keys and Philip Mulder calculated annual homeowners’ insurance costs by separating mortgage and tax payments from loan-level escrow data obtained from CoreLogic, a property and risk analytics firm. Households whose payments were captured by CoreLogic were not necessarily present in all years of data from 2014 to 2024.

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The home insurance share of total home payments are based on mean values. Total home payments include insurance, property tax and mortgage principal and interest costs. Escrow payments typically do not include utilities, homeowners’ association fees.

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Video: This Parrot Has No Beak, But Is at the Top of the Pecking Order

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Video: This Parrot Has No Beak, But Is at the Top of the Pecking Order

new video loaded: This Parrot Has No Beak, But Is at the Top of the Pecking Order

Bruce, a disabled kea parrot, is missing his top beak. The bird uses tools to keep himself healthy and developed a jousting technique that has made him the alpha male of his group.

By Meg Felling and Carl Zimmer

April 20, 2026

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Contributor: Focus on the real causes of the shortage in hormone treatments

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Contributor: Focus on the real causes of the shortage in hormone treatments

For months now, menopausal women across the U.S. have been unable to fill prescriptions for the estradiol patch, a long-established and safe hormone treatment. The news media has whipped up a frenzy over this scarcity, warning of a long-lasting nationwide shortage. The problem is real — but the explanations in the media coverage miss the mark. Real solutions depend on an accurate understanding of the causes.

Reporters, pharmaceutical companies and even some doctors have blamed women for causing the shortage, saying they were inspired by a “menopause moment” that has driven unprecedented demand. Such framing does a dangerous disservice to essential health advocacy.

In this narrative, there has been unprecedented demand, and it is explained in part by the Food and Drug Administration’s recent removal of the “black-box warning” from estradiol patches’ packaging. That inaccurate (and, quite frankly, terrifying) label had been required since a 2002 announcement overstated the link between certain menopause hormone treatments and breast cancer. Right-sizing and rewording the warning was long overdue. But the trouble with this narrative is that even after the black-box warning was removed, there has not been unprecedented demand.

Around 40% of menopausal women were prescribed hormone treatments in some form before the 2002 announcement. Use plummeted in its aftermath, dipping to less than 5% in 2020 and just 1.8% in 2024. According to the most recent data, the number has now settled back at the 5% mark. Unprecedented? Hardly. Modest at best.

Nor is estradiol a new or complex drug; the patch formulation has existed for decades, and generic versions are widely manufactured. There is no exotic ingredient, no rare supply chain dependency, no fluke that explains why women are suddenly being told their pharmacy is out of stock month after month.

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The story is far more an indictment of the broken insurance industry: market concentration, perverse incentives and the consequences of allowing insurance companies to own the pharmacy benefit managers that effectively control drug access for the majority of users. Three companies — CVS Caremark, Express Scripts and OptumRx — manage 79% of all prescription drug claims in the United States. Those companies are wholly owned subsidiaries of three insurance behemoths: CVS Health, Cigna and UnitedHealth Group, respectively. This means that the same corporation that sells you your insurance plan also decides which drugs get covered, at what price, and whether your pharmacy can stock them. This is called vertical integration. In another era, we might have called it a cartel. The resulting problems are not unique to hormone treatments; they have affected widely used medications including blood thinners, inhalers and antibiotics. When a low-cost generic such as estradiol — a medication with no blockbuster profit margins and no patent protection — runs into friction in this system, the friction is not random. It is structural. Every decision in that chain is filtered through the same corporate profit motive. And when the drug in question is an off-patent estradiol patch that has negligible profit margins because of generic competition but requires logistical investment to keep consistently in stock? The math on “how much does this company care about ensuring access” is not complicated.

Unfortunately, there is little financial incentive to ensure smooth, consistent access. There is, however, significant financial incentive to steer patients toward branded alternatives, or simply to let supply tighten — because the companies aren’t losing much profit if sales of that product dwindle. This is not a conspiracy theory: The Federal Trade Commission noted this dynamic in a report that documented how pharmacy benefit managers’ practices inflate costs, reduce competition and harm patient access, particularly for independent pharmacies and for generic drugs.

Any claim that the estradiol patch shortage is meaningfully caused by more women now demanding hormone treatments is a distraction. It is also misogyny, pure and simple, to imply that the solution to the shortage is for women’s health advocates to dial it down and for women to temper their expectations. The scarcity of estradiol patches is the outcome of a broken system refusing to provide adequate supply.

Meanwhile, there are a few strategies to cope.

  • Ask your prescriber about alternatives. Estradiol is available in multiple formulations, including gel, spray, cream, oral tablet, vaginal ring and weekly transdermal patch, which is a different product from the twice-weekly patch and may be more consistently available depending on manufacturer and region.
  • Consider an online pharmacy. Many are doing a good job locating and filling these prescriptions from outside the pharmacy benefit manager system.
  • Call ahead. Patch shortages are inconsistent across regions and distributors. A call to pharmacies in your area, or a broader geographic radius if you’re able, can locate stock that your regular pharmacy doesn’t have.
  • Consider a compounding pharmacy. These sources can sometimes meet needs when commercially manufactured products are inaccessible. The hormones used are the same FDA-regulated bulk ingredients.

Beyond those Band-Aid solutions, more Americans need to fight for systemic change. The FTC report exists because Congress asked for it and committed to legislation that will address at least some of the problems. The FDA took action to change the labeling on estrogen in the face of citizen and medical experts’ pressure; it should do more now to demand transparency from patch manufacturers.

Most importantly, it is on all of us to call out the cracks in the current system. Instead of repeating “there’s a patch shortage” or a “surge in demand,” say that a shockingly small minority of menopausal women still even get hormonal treatments prescribed at all, and three drug companies control the vast majority of claims in this country. Those are the real problems that need real solutions.

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Jennifer Weiss-Wolf, the executive director of the Birnbaum Women’s Leadership Center at New York University School of Law, is the author of the forthcoming book When in Menopause: A User’s Manual & Citizen’s Guide. Suzanne Gilberg, an obstetrician and gynecologist in Los Angeles, is the author of “Menopause Bootcamp.”

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A renewed threat to JPL as the Trump administration tries again to cut NASA

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A renewed threat to JPL as the Trump administration tries again to cut NASA

NASA recaptured the world’s attention with Artemis II, which took astronauts to the moon and back for the first time in half a century. But the agency’s scientific projects could again be under threat as the Trump administration makes a renewed push to drastically cut their funding — including at the Jet Propulsion Laboratory.

The cuts, proposed in the Trump administration’s 2027 budget request to Congress, would pose further challenges to the already weakened Caltech-managed lab and could be broadly damaging to American efforts to bring back new discoveries from space. They echo last year’s attempt by the administration to slash NASA funding, which Congress rejected.

Though the Artemis project is billed as laying a foundation for a crewed NASA mission to Mars, exploration of the Red Planet is among the endeavors that could be slashed. The rover currently exploring Mars’ ancient river delta and a mission to orbit Venus are among projects with JPL involvement targeted for spending cuts, according to an analysis of the NASA budget proposal by the nonprofit Planetary Society.

“This isn’t [because] they’re not producing good science anymore. There’s no rhyme or reason to it,” said Casey Dreier, chief of space policy at the Planetary Society, which led opposition to the administration’s similar effort to cut NASA funding last year.

Storm clouds hang over the Jet Propulsion Laboratory on Feb. 7, 2024.

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(David McNew / Getty Images)

This time, the administration is asking Congress to cut NASA funding by 23% — including a 46% cut to its science programs, which are responsible for developing spacecraft, sending them into outer space to observe and analyzing the data they send back.

The proposal would cancel 53 science missions and reduce funding for others, according to the Planetary Society analysis. The effort to pare down NASA Science comes amid the Trump administration’s broader effort to cut scientific research across federal agencies.

The plan swiftly drew bipartisan criticism from members of Congress, who rejected the administration’s similar 2026 proposal in January. Republican Sen. Jerry Moran of Kansas, who chairs the Senate appropriations subcommittee that oversees NASA, indicated last week that he would work to fund NASA similarly for 2027, saying it would be “a mistake” not to fund science missions.

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Moran plans to hold a hearing with NASA Administrator Jared Isaacman before the end of April to review the budget request, a spokesperson for his office said. The president’s budget request is an ask to Congress, which ultimately holds the power to allocate funding.

But until Congress creates its own budget, NASA will use the plan as its road map, which could slow grants and contracts. The proposal “still creates enormous chaos and uncertainty in the meantime for critical missions, the scientific workforce, and long-term research planning,” said Rep. Judy Chu (D-Monterey Park), whose district includes JPL.

A NASA spokesperson declined to comment Friday. In the budget request, Isaacman wrote that NASA was “pursuing a focused and right-sized portfolio” for its space science missions in order to align with Trump’s federal cost-cutting goals.

The budget “reinforces U.S. leadership in space science through groundbreaking missions, completed research, and next-generation observatories,” Isaacman wrote.

Jared Isaacman testifies during his confirmation hearing to be the NASA administrator

Jared Isaacman testifies during his confirmation hearing to be the NASA administrator in the Russell Senate Office Building on Capitol Hill on Dec. 3, 2025.

(Anna Moneymaker / Getty Images)

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At JPL — which has for decades led innovation in space science and technology from its La Cañada Flintridge campus — questions had already swirled about the lab’s role in the future of NASA work.

Multiple rounds of layoffs over the last two years, the defunding of its embattled Mars Sample Return mission and a shift by the Trump administration toward lunar exploration and away from the type of scientific work that JPL executes had pushed the lab into a challenging stretch.

It has had a steady stream of employee departures in recent months, and those left have been scrambling to court outside funding from private investors, sell JPL technology to companies and increase productivity in hopes of keeping the lab afloat, according to two former staffers, who requested anonymity to describe the mood inside the lab.

“If we’re not doing science, then what are we doing?” asked one former employee, who recently left JPL after more than a decade there.

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A spokesperson for the lab declined to comment, referring The Times to the budget proposal.

The NASA programs marked for cancellation or cutbacks support thousands of jobs at JPL and other centers, said Chu, who has led a push for increased funding for NASA Science. After last year’s layoffs, JPL “cannot afford to lose more of this expertise,” she said in a statement.

Among the JPL projects that appear to be slated for cancellation are two involving Venus, Dreier said. One, Veritas, is early in development and would give work to the lab for the next several years, he said.

The project would be the first U.S. mission to Venus in more than 30 years, Dreier said, and aims to make a high-resolution mapping of the planet’s surface and observe its atmosphere.

The Perseverance rover, which is on Mars collecting rock and soil samples, could face spending reductions. The budget request proposes pulling some funding from Perseverance to fund other planetary science missions and reducing “the pace of operations” for the rover.

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Though how the Mars samples might get back to Earth is uncertain, the rover is still being used to explore the planet and search for evidence of whether it could have ever been habitable to life.

Researchers hope the tubes of Martian rock, soil and sediment can eventually be brought back to Earth for study. The team has about a half a dozen more sample tubes to fill and the rover is in good shape, said Jim Bell, a planetary scientist and Arizona State University professor who leads the camera team on Perseverance, which works daily with JPL.

He said NASA’s spending proposal put forth “no plan” for the future of the agency’s work.

“Are people just supposed to walk away from their consoles,” Bell asked, “and let these orbiters around other planets or rovers on other worlds — just let them die?”

The NASA document did not clearly show which programs were targeted for cuts and did not list which projects were targeted for cancellation. The Planetary Society and the American Astronomical Society each analyzed the proposal and found that dozens of projects appeared to be canceled without being named in the document.

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Across NASA, other projects slated for cancellation according to the Planetary Society’s analysis include New Horizons, a spacecraft exploring the outer edge of the solar system; the Atmosphere Observing System, a planned project to collect weather, air quality and climate data; and Juno, a spacecraft studying Jupiter.

The administration’s plan also doesn’t prioritize new scientific projects, Bell said, which further jeopardizes long-term job stability and space discovery at centers like JPL.

“We’re going through this long stretch now with very few opportunities to build these spacecrafts,” Bell said. “All of the NASA centers are suffering from the lack of opportunities.”

Last year, the Trump administration proposed to slash NASA’s 2026 funding by nearly half. Instead, Congress approved funding in January that provided $24.4 billion for the agency — a cut of about 29% rather than the proposed 46%. The 2027 budget request asks for $18.8 billion.

Congress kept funding for science missions nearly steady, allocating $7.25 billion for science missions, about a 1% decrease from 2025. The administration had proposed cutting the science investment down to $3.91 billion. This time, the budget requests $3.89 billion.

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Under the Trump administration, NASA has put an emphasis on moon exploration, including this month’s successful Artemis II mission. Isaacman, who defended the proposed cuts on CNN last week, touted the agency’s lunar plans, including a project to build a base on the moon.

The agency has indicated commitment to some existing science missions, including the James Webb Space Telescope, the to-be-launched Nancy Grace Roman Space Telescope, the Dragonfly spacecraft set to launch for Saturn’s moon in 2028, and other projects.

“NASA doesn’t have a topline problem, we just need to focus on executing and delivering world-changing outcomes,” Isaacman said on CNN.

Scientists have urged the government not to choose between funding science and exploration but to keep up investment in both.

“It’s ultimately kind of confusing, especially on the heels of the Artemis II mission,” said Roohi Dalal, deputy director for public policy at the American Astronomical Society. “The scientific community … is providing critical services to ensure that the astronauts are able to carry out their mission safely, and yet at the same time, they’re facing this significant cut.”

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