Done for possibly two reasons.
1) A simple political attack on the red-states where the Ares rocket program is mostly located.
2) China was probably going to beat 'us' back, so why even compete.
NASA is vital to improving science education in the public schools. Kids are just not inspired much by the thought of designing weapons systems, and NASA has traditionally offered that inspiration. Dismantling and privatizing it is at odds with the whole Science and Technology culture Obama portends to be creating.
1'Obama aims to ax moon mission' - Orlando Sentinal; Block and Mathews
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