Obama is expected to tear down traditional barriers between the US civilian and military space programs to compete better in the current space race with China.
NASA on its own is not expected to have a launch vehicle ready at this stage until 2015. But the military may be able to speed up the process and save costs in times of recession.
China's burgeoning ambitions in space have the U.S. on its guard. China demonstrated some space muscle by destroying an ageing satellite of its own back in 2007. A spacewalk was conducted this September, a robotic rover mission on the moon is planned in 2012 with a human mission soon after. China's progress is being largely attributed to the military-run efforts. The U.S. fears that increasing Chinese presence in space will be a threat to the system of defence and communication satellites currently manned by the U.S.
Initial reports suggest that NASA officials are somewhat opposed to the move given the extra regulatory constraints that would arise in working with the military.
As a move of reconciliation, Obama has pledged to revive the National Aeronautics and Space Council, an umbrella body that oversaw space policy from 1958 to 1973.