The latter would build on existing research into the construction of the Orion crew capsule, which would have delivered humans to the moon in tandem with the Ares rocket under a program championed by the Bush administration.
Obama's new plan essentially kills the Ares.
The President also wants the space agency to focus more on developing green technologies that he said would improve life on Earth.
"We will increase Earth-based observations to improve our understanding of our climate and our world, science that will garner tangible benefits helping us to protect our environment for future generations," Obama said.
Obama's NASA strategy has drawn flack from numerous critics, including lawmakers from both sides of the Congressional aisle and some former astronauts, who claim it will compromise America's position in the space race, make the country dependent on foreign governments for transportation to the ISS, and kill jobs in Florida and other states that contribute to NASA-related research, development, and construction.
But Obama insisted his plan would put the U.S. in the forefront of space exploration in the long term. He also claimed his program would create 2,500 new jobs along the so-called Space Coast over the next two years and 10,000 new jobs nationwide "over the next few years."
Obama also pledged $40 million for a study into how best to compensate for Florida jobs lost due to the shuttle's cancellation. The president, whose speech was broadcast live on cable news networks, said he wanted the study "on my desk by August 15th."
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