Trump administration wants to nearly halve State Dept budget

The proposed cuts of nearly $30 billion in fiscal 2026 are outlined in a so-called "Passback," the response by the White House budget office – the Office of Management and Budget (OMB) – to State Department funding requests for the upcoming fiscal year, which begins on October 1.

While the department can request revisions, one U.S. official said the final version likely will be changed only “a tad” before it is submitted for approval to Congress, where “the chances are high” that some funds will be restored.

The internal document was first reported by the Washington Post.

As part of the plan - which is yet to be finalized - the administration is considering a recommendation to close at least 27 U.S. missions largely in Africa and in Europe, according to a separate internal memo seen by Reuters. Ten of those missions are embassies and the rest are consulates.

The State Department, the White House and the OMB did not respond immediately to a request for comment.

The deliberations come as the Trump administration and billionaire Elon Musk’s Department of Government Efficiency pursue a rapid and massive downsizing of the federal government, cutting billions of dollars in spending and terminating thousands of employees.

During Trump's first term he proposed cutting about a third of U.S. diplomacy and aid budgets. But Congress, which sets the federal U.S. government budget, pushed back on Trump's proposal.

The summary of the OMB passback reviewed by Reuters calls for a FY2026 budget for the State Department of $28.4 billion, compared to $54.4 billion for the current fiscal year.

It also proposes slashing foreign assistance distributed by the State Department and the U.S. Agency for International Development from $38.3 billion to $16.9 billion.

Any requests for revisions, the document says, "must be explicitly appealed" no later than noon on Tuesday.

The OMB document noted that the administration is closing USAID, merging some of its functions into the State Department and terminating programs that "are duplicative or inconsistent with Administration priorities."

The administration and DOGE began dismantling USAID in February. More than 5,000 programs have been closed, hundreds of contractors fired and termination notices sent to thousands of personnel and staff.

The OMB document said major international disaster assistance and refugee programs would be eliminated and new $2.5 billion International Humanitarian Assistance and $1.5 billion presidential emergency refugee and migration programs created.

The latter would be used for "urgent and new crises both at home and abroad," it said, adding that the new approach puts "the interests of American citizens first."

The document said there would be no funds for Enduring Welcome, the program that funds the evacuation and resettlement in the U.S. of Afghans, including those at risk of Taliban retaliation because they worked for the U.S. government during the 20-year war.

OMB proposed eliminating all of the department's educational and cultural programming, including the Fulbright program, which was established in 1946, that sends U.S. graduate students abroad to study, conduct research or teach English.

The 10 embassies that are being considered for closure are based in Eritrea, Grenada, Lesotho, Central African Republic, Luxembourg, Republic of the Congo, the Gambia, South Sudan, Malta and the Maldives, according to the second document reviewed by Reuters.

Among the 17 consulates that were recommended for a shutdown, more than a dozen are based in Europe, some of which previously have been reported by Reuters. The remaining four are the U.S. missions in Busan in South Korea, Durban in South Africa, Medan in Indonesia and Douala in Cameroon.

The memo is also looking at ways to consolidate large missions such as the ones in Japan and Canada by resizing a number of consulates in the country to reduce the footprint.

The recommendations call for reducing the size of U.S. posts in Mogadihsu, Somalia and Iraq, which the memo described as "by far the most expensive diplomatic mission" that Washington operates.