What did the us gov do in response to the launch of the soviet satellite sputnik in 1957

The US government rushed to get into space.  Hence the name "Space Race"

It was a key event in the early Cold War that triggered the creation of NASA and Space Race. The launch spurred a series of initiatives by the United States,ranging from defense to education. Increased emphasis was placed on the Navy's Project Vanguard to launch an American satellite into orbit between the two superpowers. 

Militarism is the answer.