NASA has announced a major change in its lunar exploration strategy, deciding to abandon plans for a space station in lunar orbit and instead redirect its efforts toward building a $20 billion base on the Moon’s surface over the next seven years.

The decision was revealed on Tuesday by NASA Administrator Jared Isaacman, who recently took leadership of the agency in December. Speaking at a NASA event in Washington, Isaacman outlined significant changes to the Artemis program, the agency’s flagship initiative aimed at returning humans to the Moon.

“It should not really surprise anyone that we are pausing Gateway in its current form and focusing on infrastructure that supports sustained operations on the lunar surface,” Isaacman said during the briefing.

The planned Lunar Gateway, which was already partially developed with contractors including Northrop Grumman and Vantor (formerly Maxar), was intended to function as a space station in lunar orbit. It would have served both as a research platform and a transfer point for astronauts traveling to and from lunar landers.

Under the revised approach, NASA plans to repurpose parts of the Gateway hardware and incorporate international partner contributions into the new surface-based lunar infrastructure. However, officials acknowledged that converting orbital station components into a lunar surface base will present technical challenges.

“Despite some of the very real hardware and schedule challenges, we can repurpose equipment and international partner commitments to support surface and other program objectives,” Isaacman said.

The shift represents a significant reshaping of NASA’s Artemis program, affecting billions of dollars in existing contracts and forcing industry partners to adjust quickly to new requirements.

The move also comes amid growing competition in space exploration, as China advances its own plans for a crewed Moon landing targeted for around 2030.