The Trump administration proposed slashing the State Department and USAID budgets by almost half, totaling $27 billion, resulting in a remaining budget of $28.4 billion for the next fiscal year. This significant reduction reflects a 48% decrease compared to the 2025 congressional funding levels.
The proposal assumes USAID's full integration into the State Department. Funding for international peacekeeping missions would also be entirely eliminated, citing unspecified “recent mission failures.”
The proposed cuts face uncertainty regarding congressional approval, with some Republican lawmakers expressing opposition. The cuts coincide with Trump's attempt to reorient US foreign relations, withdrawing from international organizations and reducing humanitarian assistance.
The State Department is reportedly preparing a downsizing plan including layoffs of tens of thousands of employees and consulate closures. The proposal also includes a pay and hiring freeze, reduced benefits and travel, and the consolidation of positions. Several offices and programs, including the Bureau of Conflict and Stabilization Operations and the Fulbright Program, would be closed or terminated.
Critics label the proposal “reckless and dangerous,” arguing it would empower adversaries like China and Russia. Concerns have also been raised about the impact on NATO and UN peacekeeping operations. The proposed creation of an “America First Opportunities Fund” with $2.1 billion, and cuts to the State Department's Office of Inspector General are viewed with suspicion.