Trump Administration Proposes Major Overhaul: U.S. State Department Budget to Be Halved

The Trump administration plans to cut the U.S. State Department’s budget by nearly half in fiscal 2026, possibly closing 30 missions and cutting foreign aid substantially. The proposed changes aim to downsize government operations, despite anticipated Congressional resistance.

The Trump administration is eyeing a significant overhaul of the U.S. State Department budget, proposing a nearly 50% reduction for fiscal 2026. According to internal documents reviewed by Reuters, this move could lead to the closure of 30 U.S. missions and substantial cuts in foreign aid.

The proposal, outlined in a 'Passback' from the Office of Management and Budget, suggests slashing the department's funding from $54.4 billion to $28.4 billion. It also recommends reducing foreign aid distributed by the State Department and USAID from $38.3 billion to $16.9 billion, a significant decrease that would impact international disaster and refugee assistance programs.

Despite likely resistance from Congress, which has previously countered similar proposals by President Trump, the administration continues to push for substantial downsizing of federal operations, closing numerous programs and potentially shutting down 27 U.S. missions primarily in Africa and Europe.

(With inputs from agencies.)