The Trump administration is considering a significant reduction in international spending by proposing to cut the joint budget of the State Department and the U.S. Agency for International Development (USAID) by nearly half for fiscal year 2026. The proposed budget would allocate $28.4 billion, down from $54.4 billion in 2025. This plan includes the dismantling of USAID, with its remaining operations to be absorbed by the State Department.
The proposal, spearheaded by the Office of Management and Budget, aims to eliminate or reduce numerous foreign programs, including those supporting democracy, global health, education, drug interdiction, refugee assistance, and U.N. peacekeeping. Spending on global health programs could be cut by approximately 50 percent, while funding to address migration and refugees would be halved and reserved solely for emergency purposes.
As part of these sweeping efforts to slash the diplomatic budget, the administration is considering shuttering up to three dozen U.S. diplomatic missions worldwide, including embassies in Southern Africa and the Sahel, consulates in Europe, and several embassies in Oceania.
The administration also plans to return approximately $20 billion in previously allocated funds to the Treasury through rescissions. While the proposal signals the administration’s focus on reducing federal spending, it faces uncertainty in Congress, where past White House budget proposals have often been rejected. Secretary of State Marco Rubio may attempt to preserve some programs, and final decisions on funding have yet to be made, according to an OMB spokesperson.
Critics argue that such deep cuts could undermine U.S. diplomatic efforts and global influence. Senator Jeanne Shaheen warned that undermining diplomatic programs weakens U.S. national security and global standing.
The proposed budget cuts are part of the Trump administration’s broader agenda to reduce the size and spending of the federal government. The administration moved early on to dramatically reduce foreign aid spending, including effectively dismantling USAID, despite insistence by Democratic lawmakers that it could not do so.
