A document obtained by POLITICO shows plans to zero out or substantially reduce spending on many programs, including ones that promote democracy.
The Trump administration is weighing asking Congress to cut the budgets of the State Department and USAID by nearly half as it continues its effort to dramatically curtail government spending, according to a document obtained by POLITICO.
The proposal for fiscal 2026 would allocate
$28.4 billion to State and USAID, down from $54.4 billion in the enacted
fiscal 2025 budget. That includes cuts demanded by the White House
Office of Management and Budget. It also accounts for the dismantling of
USAID; its remaining programs are in the process of being subsumed by
the State Department.
The proposal would eliminate or substantially cut numerous programs, including ones that promote democracy, support educational and cultural exchanges, fight drug trafficking and assist U.N. peacekeeping efforts.
Spending on global health programs could be cut by some 50 percent, while funding to deal with migration and refugees would be cut in half and only used for emergency purposes, the document shows.
The administration is considering shuttering up to three dozen U.S. diplomatic outposts around the world, according to two U.S. officials familiar with the matter, as part of these sweeping efforts to slash the diplomatic budget. This includes U.S. embassies in Southern Africa and the Sahel, consulates in Europe and several embassies in Oceania, the officials said.
The budget document indicates that the Trump administration will also ask Congress to accept around $20 billion in rescissions — meaning money that the department has decided not to spend and will return to the Treasury. The document is different from a State Department reorganization plan due soon to OMB.
It’s unclear how far the proposal will get. It’s possible that Secretary of State Marco Rubio may insist — despite OMB’s demands — on saving some of the programs.
State Department spokespeople did not immediately respond to a request for comment. However, Rachel Cauley, an OMB spokesperson, said, “No final funding decisions have been made.”
Even if the cuts all make it into President Donald Trump’s formal budget proposal for fiscal 2026, Congress has a history of ignoring such offerings from the White House and coming up with its own plan.
Still, the proposal sends a signal of the administration’s priorities, which, above all, has been to shrink the size and spending of the government. The administration moved early on to dramatically reduce foreign aid spending as part of this goal, including effectively dismantling USAID despite insistence by Democratic lawmakers that it could not do so without agreement from Congress.
Funding for the State Department and USAID make up the bulk of the international affairs budgets overseen by Congress, though there are some related programs at other agencies. It was not clear what plans are for those other programs.
Robbie Gramer contributed to this report.