Trump memo proposes halving state department, foreign aid funding

The Trump administration is weighing a dramatic reduction in funding for the State Department and the U.S. Agency for International Development (USAID), with a proposal to slash their combined budget by nearly half.

The document outlines plans to reduce total funding for the State Department and USAID to $28.4 billion in the next fiscal year — a $27 billion drop from the $55.4 billion approved by Congress for 2025, Caliber.Az reports per U.S. media. 

The proposal, drafted by the White House Office of Management and Budget (OMB), suggests sweeping cuts across humanitarian aid, global health, and support for international organisations, including the United Nations and NATO.

Under the proposal, humanitarian assistance would be cut by 54 percent, and funding for global health programmes would be slashed by 55 percent. Nearly 90 percent of funding for international organisations would be eliminated, with most U.S. contributions to the UN, NATO and 20 other groups ending altogether. Limited support would continue for select agencies such as the International Atomic Energy Agency and the International Civil Aviation Organization.

The memo, dated April 10 and signed by senior State Department budget officials Douglas Pitkin and Peter Marocco, indicates that the administration envisions USAID being fully absorbed into the State Department — a long-standing goal of President Trump’s team. The White House has also proposed eliminating USAID as a standalone agency, a move that experts say cannot legally be executed without congressional approval.

Funding for international peacekeeping missions would also be eliminated, with the memo citing “recent mission failures” but providing no further explanation. The Fulbright Program and other cultural and educational exchange initiatives would be terminated entirely.

Critics have condemned the plan as dangerously short-sighted. The American Foreign Service Association warned that the proposed budget would “empower adversaries like China and Russia” by reducing the United States’ global footprint. Brett Bruen, a former State Department official, described the plan as a “demolishing of our international influence instruments.”

While the proposal is not final and is still subject to internal debate and congressional negotiations, it reflects President Trump’s broader foreign policy shift — one that favours a reduced international presence and prioritises national interests under the “America First” banner. The budget includes a new initiative called the America First Opportunities Fund, allocating $2.1 billion for unspecified Trump administration priorities. Some of that funding could, the memo notes, still be channelled into peacekeeping or UN programmes.

Despite the deep cuts, the draft budget retains funding for politically popular programmes. These include $5.1 billion in foreign military financing for allies such as Israel and Egypt, and $2.9 billion for the President’s Emergency Plan for AIDS Relief (PEPFAR).

Secretary of State Marco Rubio — a former senator known for his support of U.S. global engagement — is expected to submit a response to the OMB proposal by Tuesday. Officials familiar with internal discussions say the State Department is preparing a separate restructuring plan that includes massive staff reductions, with the potential layoff of tens of thousands of employees and closures of multiple U.S. consulates and overseas facilities.

The draft memo has raised alarm among diplomatic circles. “The question there is, from the low point of current morale, can they find a lower one?” said Ronald E. Neumann, a former U.S. ambassador.

Lawmakers from both parties are expected to push back against parts of the proposal. Senator Chris Van Hollen, the top Democrat on the Senate subcommittee overseeing State Department funding, dismissed the draft budget as “unserious” and predicted it would face bipartisan resistance.

The final budget proposal is due to be submitted to Congress later this month.