The Trump administration has proposed slashing the combined budget of the State Department and the remnants of the U.S. Agency for International Development (USAID) by 48 percent, according to an internal memorandum reviewed by The Washington Post. The document outlines an early draft from the White House Office of Management and Budget (OMB) suggesting a total allocation of $28.4 billion for the next fiscal year — a dramatic fall from the $55.4 billion approved by Congress for 2025.
According to The Washington Post report, the proposal assumes USAID has been fully absorbed into the State Department, a longstanding aim of the Trump administration. Funding for humanitarian assistance would be reduced by 54 percent, while global health programmes would see a 55 percent cut. Contributions to international organisations would be slashed by nearly 90 percent.
International bodies face deep cuts
The memo proposes ending U.S. support for major institutions, including the United Nations and NATO, along with 20 other international organisations. Limited funding would remain for a select few, such as the International Atomic Energy Agency and the International Civil Aviation Authority. Additionally, all funding for international peacekeeping missions would be eliminated, citing unspecified “recent mission failures.”
Julianne Smith, former U.S. ambassador to NATO, warned the decision could seriously undermine alliance unity: “It really gets at the heart of how the alliance operates and could issue a devastating blow to alliance unity.”
Internal pushback and low morale
The proposed reductions coincide with President Donald Trump’s broader push to diminish the federal workforce, which includes the dismantling of USAID by Elon Musk’s controversial U.S. DOGE Service. While there has been muted resistance from Republican lawmakers, critics say the move could meet bipartisan opposition in Congress.
Senator Chris Van Hollen, the top Democrat on the Senate subcommittee for the State Department and USAID, labelled the proposal “an unserious budget,” predicting it “will hit a wall of bipartisan opposition.”
Within the State Department, the mood is bleak. Secretary of State Marco Rubio is reportedly preparing for a significant downsizing plan, including mass layoffs and the closure of multiple U.S. consulates. “The question there is, from the low point of current morale, can they actually find a lower one?” said Ronald E. Neumann, a former ambassador and career Foreign Service officer.
Critics decry loss of U.S. global influence
The American Foreign Service Association has urged Congress to reject the cuts, calling them “reckless and dangerous.” Brett Bruen, a former State Department and White House official, warned, “It is essentially the demolishing of our international influence instruments.”
Programmes targeted for elimination include all educational and cultural initiatives, such as the Fulbright Program, as well as the closure of offices like the Bureau of Conflict and Stabilization Operations. The memo also proposes a pay and hiring freeze and reduced travel and benefits for Foreign Service staff.
Selective spending and creation of a new fund
Despite the sweeping cuts, the Trump administration’s plan preserves funding for certain politically favourable programmes, including $5.1 billion in military financing for allies like Israel and Egypt, and $2.9 billion for the PEPFAR global AIDS initiative.
It also introduces a new initiative — the America First Opportunities Fund (A1OF) — with $2.1 billion earmarked for evolving Trump administration priorities. Some of these funds could potentially support peacekeeping or the United Nations, though specifics remain vague.
Bruen criticised the A1OF as “a slush fund,” adding, “They are reducing the capacity for oversight at a time when they are saying efficacy is the priority.”
The memo, signed by State Department officials Douglas Pitkin and Peter Marocco, is dated 10 April. Secretary Rubio has until Tuesday to submit any recommended revisions. The final budget request is expected in late April.
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