Trump Eyes 48 Percent Cut to State, USAID in 2026

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.