FleaPlus writes "In a surprise move in the battle between NASA and certain members of Congress over NASA's future direction, NASA has told its contractors to cut back nearly $1 billion on this year's Ares/Constellation program, stating that the cutback is necessary to remain in compliance with federal spending laws requiring contractors to withhold contract termination costs. While complying with budgeting laws (and in line with NASA's desire to cancel Constellation), this move is also potentially in violation of a 2010 appropriations amendment by Sen. Shelby (R-AL) and Sen. Bennett (R-UT) which prohibits NASA from terminating any Constellation contracts. If NASA's move goes through, the biggest liability is $500M for ATK, the contractor who is/was responsible for the first stage of the Ares I medium-lift rocket."
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