President Donald Trump's administration is weighing a dramatic reduction in foreign affairs funding, with a proposal to slash the combined budgets of the State Department and U.S. Agency for International Development by nearly half in fiscal 2026, according to an internal memo reviewed by The Washington Post, The Hill reported.
An early budget proposal from the White House Office of Management and Budget recommends cutting the budgets by 48% next year, the Post reported Thursday. The fiscal 2026 plan would allocate $28.4 billion to the two agencies, a drop from the $54.4 billion approved for 2025.
The proposal also envisions the dissolution of USAID, with the remaining programs absorbed by the State Department. According to the Post, the Trump administration is expected to complete that merger in the coming months.
The memo outlines significant reductions to U.S. foreign aid and international engagement. Funding for humanitarian assistance would be slashed by 54%, and global health initiatives would see a 55% decrease.
The memo further recommends eliminating nearly 90% of U.S. funding to international organizations. Contributions to the United Nations, NATO, and 20 other multinational groups would end. The proposal also reportedly eliminates all funding for international peacekeeping missions.
A few organizations, such as the International Atomic Energy Agency and the International Civil Aviation Authority, would be spared from the cuts, the Post reported.
The Trump administration is still internalizing the budget proposal. Any spending changes must be approved by Congress.
On Thursday, the House narrowly passed the revised budget resolution for fiscal 2025 in a 216-214 vote. Republican Reps. Victoria Spartz of Indiana and Thomas Massie of Kentucky joined all Democrats in voting no, according to the American Hospital Association. The Senate approved the resolution last week, the association reported.
The Trump administration's push to streamline foreign assistance and reduce funding to international bodies reflects a broader effort to realign U.S. priorities abroad. Critics argue the move could weaken global alliances and humanitarian efforts, while supporters say it reflects a long-overdue focus on domestic interests.
Jim Thomas ✉
Jim Thomas is a writer based in Indiana. He holds a bachelor's degree in Political Science, a law degree from U.I.C. Law School, and has practiced law for more than 20 years.
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