NASA pivoted from an orbital Lunar Gateway to a surface Moon base after a March event at its Washington headquarters. The agency halted work on the Gateway and retooled its Power and Propulsion Element for a deep‑space nuclear‑electric test. The shift left the Habitation and Logistics Outpost (HALO) in limbo.

HALO is a 6.1‑meter pressurized module where astronauts would spend most of their time on the Gateway. NASA awarded a $1.1 billion contract to Northrop Grumman to design, build and integrate HALO with the Power and Propulsion Element. The partnership promised a key component for the planned lunar outpost.

Following NASA’s March shift, Northrop Grumman pushed to include HALO in the Moon Base plan, but that effort stalled. Last week, Paragon Space Development Corp., a key HALO contractor, was told to halt work on the vehicle. Paragon had received a 2022 contract worth more than $100 million for HALO’s life‑support system.

With HALO cancelled, NASA will reassign most affected employees to other projects. The decision signals a broader shift toward surface operations and a focus on nuclear propulsion for deep‑space missions. The halt also underscores the volatility of contractor work when high‑profile programs pivot.