That's not even remotely accurate. NASA is seeing an overall budget
increase of $6 billion over the next five years, with $3.2 billion of that increase going to research. This budget
does axe the constellation program, but this was done at the recommendation of the
Augustine Commission, a " blue-ribbon panel of experts appointed by Obama to look into NASA’s future plans and make recommendations."
NASA’s Constellation program – based largely on existing technologies – was based on a vision of returning astronauts back to the Moon by 2020. However, the program was over budget, behind schedule, and lacking in innovation due to a failure to invest in critical new technologies. Using a broad range of criteria an independent review panel determined that even if fully funded, NASA’s program to repeat many of the achievements of the Apollo era, 50 years later, was the least attractive approach to space exploration as compared to potential alternatives. Furthermore, NASA’s attempts to pursue its moon goals, while inadequate to that task, had drawn funding away from other NASA programs, including robotic space exploration, science, and Earth observations. The President’s Budget cancels Constellation and replaces it with a bold new approach that invests in the building blocks of a more capable approach to space exploration…
Phil Plait, an astronomer, science writer, and all around awesome guy, largely thinks that Obama's move is the right one for NASA. It seems as though this new budget acknowledges reality, specifically that Constellation just wasn't going to be successful in its current form. This is really putting NASA's focus on innovation, where it should be, and encouraging private companies to make earth-orbit spaceflight efficient.
There aren't any politics here. This really does look like the right thing to do, not only for NASA's long term (sure, we're resetting a bit on getting back to the moon, but it didn't look like Constellation was going to succeed anytime soon), but for space exploration as a whole.