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NASA halts work on HALO lunar module, shifting focus to surface Moon base
NASA has instructed contractors, including Northrop Grumman and Paragon Space Development Corp., to stop work on the HALO lunar habitat module. This decision follows NASA's March announcement to shift its lunar strategy from an orbital Lunar Gateway to a surface-based Moon base.
Quick Facts
Who
NASA
What
NASA directed contractors to stop work on HALO module
When
Three months before June 2026 (March 2026) - NASA announcement
Where
Moon
- NASA directed contractors to stop work on HALO module
- NASA shifted lunar strategy from orbital station to surface Moon base
- Power and Propulsion Element repurposed for nuclear-electric propulsion demonstration
- Northrop Grumman lobbied to include HALO in Moon base plans
- NASA
NASA has directed Northrop Grumman and its subcontractors to cease work on the Habitation and Logistics Outpost (HALO) module, marking a significant shift in the agency's lunar exploration strategy. The decision follows NASA's announcement three months earlier to redirect its focus from an orbital Lunar Gateway space station to a Moon base on the surface.
The HALO module is a 6.1-meter-long pressurized habitat originally designed to serve as the primary living quarters for astronauts visiting the Lunar Gateway. NASA awarded Northrop Grumman $1.1 billion in contracts to design, build, and integrate the module with the Power and Propulsion Element. Paragon Space Development Corp., a key subcontractor, received more than $100 million in 2022 to develop the life-support system for HALO.
The halt represents a reversal of efforts by Northrop Grumman, which had actively lobbied NASA following the March announcement to include the HALO module in the new Moon base plans. According to sources, Paragon Space Development Corp. was instructed to stop work on the module last week. The Power and Propulsion Element, the other major Lunar Gateway component that was advanced in development, will instead be repurposed to serve as a core module for a nuclear-electric propulsion demonstration in deep space.
This restructuring reflects NASA's strategic pivot toward establishing a surface-based lunar infrastructure rather than maintaining an orbital gateway station. The decision affects multiple contractors and represents a significant redirection of resources within the agency's ambitious lunar exploration program.
Why This Matters
This decision signals a fundamental restructuring of NASA's lunar exploration architecture. The shift from an orbital gateway to a surface-based approach could accelerate sustained human presence on the Moon while freeing up resources for alternative deep-space propulsion technologies. For contractors and stakeholders, it represents a major reprioritization that affects procurement pipelines, workforce planning, and long-term space infrastructure investment strategies.
Timeline & Sources
Jan 1, 2022
WireParagon Space Development Corp. awarded $100+ million contract for HALO life-support system
Jun 18, 2026
WireArs Technica reports on NASA's halt of HALO module development