Trump considers cutting State Department budget by almost 50%
A document acquired by PMG reveals intentions to completely eliminate or significantly cut funding for various programs, including those that support democracy.

For fiscal 2026, the proposal suggests allocating $28.4 billion for State and USAID, a decrease from the $54.4 billion in the enacted fiscal 2025 budget. This reduction includes cuts proposed by the White House Office of Management and Budget and reflects the intended dismantling of USAID, with its remaining programs set to be absorbed by the State Department.
The plan aims to eliminate or significantly reduce funding for numerous initiatives, including those that foster democracy, enhance educational and cultural exchanges, combat drug trafficking, and support U.N. peacekeeping efforts.
Global health programs could see a funding cut of approximately 50%, while resources allocated for addressing migration and refugee issues would be halved and restricted to emergency needs, according to the document.
Additionally, the administration is contemplating the closure of up to three dozen U.S. diplomatic missions globally, as confirmed by two U.S. officials familiar with the situation. This reduction would affect U.S. embassies in Southern Africa and the Sahel region, consulates in Europe, and several embassies in Oceania, the officials noted.
Furthermore, the budget document suggests that the Trump administration will request Congress to approve around $20 billion in rescissions, which refers to funds the department intends to return to the Treasury. This proposal differs from a State Department reorganization plan expected to be submitted to OMB soon.
The potential success of this proposal remains uncertain. Secretary of State Marco Rubio may advocate for preserving some programs despite OMB's recommendations.
State Department representatives did not immediately provide comments on the proposal. However, Rachel Cauley, a spokesperson for OMB, stated, “No final funding decisions have been made.”
Even if these proposed cuts are included in President Donald Trump’s official budget proposal for fiscal 2026, Congress has a track record of disregarding such White House proposals and crafting its own budget plan.
Nevertheless, the proposal highlights the administration’s priorities, particularly its focus on reducing the scale and expenditures of the government. The administration took early steps to significantly diminish foreign aid budgets as part of this strategy, which included effectively dismantling USAID, despite assertions from Democratic lawmakers that such action could not proceed without congressional approval.
Funding for the State Department and USAID constitutes a significant portion of the international affairs budgets managed by Congress, though related programs exist within other agencies as well. The future of these additional programs remains unclear.
Sophie Wagner for TROIB News