In a move echoing the high-stakes competition of the Cold War, the United States is preparing to launch a new era of lunar exploration—this time, with nuclear power at its core. Transportation Secretary Sean Duffy, who also serves as NASA’s interim administrator, is set to announce a sweeping directive this week to accelerate the construction of a nuclear reactor on the moon, according to multiple media reports and a recent press conference covered by The New York Sun and Fox News. The plan, which aims to see a 100-kilowatt fission reactor operational on the lunar surface by late 2029 or 2030, represents a dramatic escalation in what Duffy has called a “second space race” against China and Russia.
The directive comes at a pivotal moment. Both China and Russia have publicly announced their intention to jointly deploy a nuclear reactor on the moon by the mid-2030s, potentially establishing a "keep-out zone" that could limit American access to strategic lunar regions. “There are very specific areas of the moon that are critical that who gets there first gets to plant their flag,” Duffy recently told Fox News. “We know the Chinese want to get there as well, so speed is of the essence.”
NASA has long considered the need for sustainable, high-output power sources to support human outposts on the moon and, eventually, Mars. But Duffy’s new directive, which expedites the timeline and mandates that the agency solicit proposals for the lunar reactor within 60 days, marks the first time such an ambitious deadline has been set. The goal, as stated in the directive, is clear: “Fission surface power (FSP) is both an essential and sustainable segment of the lunar and Mars power architectures for future human space exploration missions. To properly advance this critical technology to be able to support a future lunar economy, high power energy generation on Mars, and to strengthen our national security in space, it is imperative the agency move quickly.”
What makes this initiative particularly notable is the way it blends federal urgency with private sector innovation. As The New York Sun reports, companies such as Lockheed Martin, Westinghouse, and Intuitive Machines are already under contract to develop prototype lunar reactors, investing both government and their own resources in research and development. SpaceX, meanwhile, continues as a key partner in NASA’s Artemis program, which is set to launch its first crewed mission around the moon in September 2025 and aims for a lunar landing in mid-2027.
“This is crucial for developing a space logistics system,” explained Namrata Goswami, a professor of space security at Johns Hopkins University, to The Sun. “If the U.S. truly aims to build a large-scale lunar base, power is the most vital requirement.” She also pointed out that China, with its 102 operational nuclear reactors, has significant experience in nuclear power development—an advantage that adds urgency to America’s efforts.
This renewed public-private partnership is reminiscent of the Apollo era, when NASA led a coalition of more than 20,000 companies—ranging from Northrop Grumman to IBM—to put a man on the moon. However, in recent decades, the U.S. approach shifted toward incremental innovation and maintenance of low-Earth orbit operations, rather than bold, mission-driven science. “The state has retreated from the pursuit of the kind of large-scale breakthroughs that gave rise to the atomic bomb and the internet,” writes Alex Karp, CEO of Palantir, in The Technological Republic. “Silicon Valley, meanwhile, turned inward, focusing its energy on narrow consumer products, rather than projects that speak to and address our greater security and welfare.”
The Trump administration, however, is actively seeking to reverse this trend. Its techno-nationalist agenda is putting defense and energy contractors back at the center of America’s space ambitions. The administration’s 2026 budget proposal, while controversial, reflects this shift: it slashes NASA’s overall funding from $24.8 billion to $18.8 billion—the lowest since 1961 when adjusted for inflation—while boosting allocations for lunar missions (over $7 billion), Mars initiatives ($1 billion), and space defense. The recently passed “One Big Beautiful Bill” also directs nearly $40 billion to the U.S. Space Force and $25 billion for a new “Golden Dome” missile defense shield.
Not everyone is convinced this is the right path. Critics, including astrophysicist and science writer Ethan Siegel, warn that “the plan threatens to siphon funds from other essential services” and “provides a blueprint and justification for dismantling and defunding NASA science.” In an open letter in May, NASA advisory groups cautioned that the U.S. “will cede this position of leadership to other nations, such as China,” if core science programs are gutted in favor of high-profile lunar projects.
Yet as some funding streams narrow, others surge. The administration’s focus on human space exploration, coupled with new commercial models, is changing how NASA does business. Clayton Swope, deputy director of the Aerospace Security Project at the Center for Strategic and International Studies, described the evolving approach to The Sun: “It’s a new kind of partnership. The government says, ‘we need this,’ and companies say, ‘here’s what we can do.’ Then NASA picks the best path forward.”
This competitive, market-driven model stands in contrast to the top-down approaches of China and Russia. “That’s the beauty of how NASA is doing business these days and of the American system: you have an ecosystem of innovation, where companies can come to the table and say, ‘I have a good idea,’” Swope added. “You’re not going to see that in China and Russia, which have a top-down approach to the same problem.”
The stakes are high. China and Russia’s joint lunar reactor project, if successful, could allow them to declare exclusive zones on the moon, limiting American activities and potentially threatening U.S. satellite systems. American officials have repeatedly expressed concerns over the Chinese space program’s ties to the People’s Liberation Army, raising the specter of space-based warfare. In April 2025, China launched three astronauts on a six-month mission aboard its Tiangong space station, a facility built after Beijing was excluded from the International Space Station due to U.S. security concerns.
Meanwhile, Duffy has also issued a directive to fast-track the replacement of the aging International Space Station, which has been orbiting Earth since 1998. NASA plans to award contracts to at least two, preferably three or four, companies within six months of issuing its request for proposals—a move designed to ensure the U.S. maintains a permanent foothold in low-Earth orbit even as attention shifts to the moon and beyond.
“We’re going to set up a base camp,” Duffy told Fox News. “And what we learn on the moon is going to take us to Mars.”
As America’s lunar ambitions heat up, the world is watching to see whether this fusion of government resolve and private ingenuity can once again propel the U.S. to the frontiers of space. The race is on, and the outcome will shape not just the future of exploration, but the balance of power beyond Earth itself.
