I think it’s a budget allocation issue, not an overall budget issue. SLS+ML and Orion are absolute money pits. MSR was ballooning in price for all the wrong reasons. On top of that, NASA got a taste of firm fixed price contracts leading to companies underbidding and putting up their own money, which worked out in some cases and not others (SpaceX and Intuitive Machines on one side, Boeing and Collins on the other).
Some startups are working and some aren’t. That shouldn’t be surprising. This is one of the reasons for dissimilar redundancy on a lot of these contracts.
“New Space” companies that survive the startup phase are stealing market share and giving a kick in the pants to legacy primes in a lot of areas. NASA centers need to shape up, too.