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Well, that's really an attempt at saving money. And it's a strategy that actually works with some of their contractors. (Not so much with Boeing and ULA)
The problem is that they really need more budget. There's absolutely no reason they couldn't have five times the funding they have now. The US military had a budget of 820 billion last year, NASA used 200 million. Meaning, that you could quintuple NASA's budget with an additional 800 million by shifting 0.1% of military funding their way.
Personally, I think NASA is more than 0.1% as important as our military, but that's just me.
Just to put that in perspective: that's less than a dollar per American for NASA and over a thousand dollars for the military.