As a result, the launch of Sputnik served to intensify the arms race and raise Cold War tensions. During the 1950s, both the United States and the Soviet Union were working to develop new technology. ... The Soviet launch of the first Sputnik satellite was one accomplishment in a string of technological successes.
“Sputnik Mania” led the United States to increase defense spending and establish a crash program to enhance science education and military research. In 1958, Congress created the National Aeronautics and Space Administration (NASA) to coordinate research and development related to outer space. Finally, in 1958, Congress, with Eisenhower’s endorsement, enacted the National Defense Education Act (NDEA), which authorized massive federal grants to colleges and universities to enhance education and research in mathematics, science, and modern languages, as well as for student loans and fellowships. The NDEA provided more financial aid to higher education than any other previous legislation.
