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2mo ago

Trump Administration Proposes Nearly 50% Cut to State Department and USAID Budget

The preliminary fiscal 2026 budget includes drastic reductions in foreign aid, global health funding, and diplomatic operations, facing expected bipartisan opposition in Congress.

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The seal of the United States Department of State is seen in Washington, U.S., January 26, 2017. REUTERS/Joshua Roberts/File Photo
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Overview

  • The proposed budget reduces State Department and USAID funding by $27 billion, cutting the total to $28.4 billion for fiscal year 2026, a nearly 50% decrease from 2025 levels.
  • Drastic cuts include a 54% reduction in humanitarian assistance, a 55% drop in global health funding, and the elimination of nearly 90% of support for international organizations such as the UN and NATO.
  • The plan outlines the closure of 10 embassies and 17 consulates, with significant downsizing of diplomatic missions in countries like Canada, Japan, and Iraq.
  • USAID is assumed to be fully absorbed into the State Department as part of a broader restructuring, with thousands of programs and jobs already terminated.
  • The proposal is in a preliminary phase, undergoing internal reviews, and is expected to face strong bipartisan resistance in Congress before any final decisions are made.