From FY 2009, NASA’s budget increased slightly, while DOD declined by nearly $100 billion. DHHS, on the other hand, increased by some $80 billion (or nearly the entire sum cut from DOD).
Historically speaking, mil and space had been the drivers for innovation, education, and employment.
Personally, I'd pretty much gut DHHS - reducing its budget to $10 billion at best, use some of the remaining 865 billion to reduce the deficit, split the rest between DOD and NASA.
Let DOD do what it does best with the money, but dedicate the NASA money to R&D, support, infrastructure, and tracking; a sizable portion would be dedicated toward pushing commercial prizes/goals.
On the political front simultaneously, the US would withdraw from the UN Space Treaty, thereby permitting private companies to keep any ventures beyond LEO proprietary - rather than become property of the UN as things stand with the Treaty.
US industry and education would be forced to rebuild - creating many high paying jobs and well educated and motivated kids.
Mike