
The Trump administration is planning to cut the U.S. State Department’s budget by nearly half for the 2026 fiscal year, reducing it from $54.4 billion to $28.4 billion.
The proposed cuts include slashing foreign aid and closing almost 30 U.S. diplomatic missions, one of which is the U.S. Embassy in The Gambia.
According to Reuters, the proposed $30 billion in cuts for fiscal year 2026 are outlined in a document known as a “Passback”, the White House Office of Management and Budget’s (OMB) response to funding requests from the State Department for the upcoming fiscal year, which begins on October 1.
While the State Department can appeal for revisions, one U.S. official noted the final version will likely be altered only “a tad” before being submitted to Congress, where “the chances are high” that some funds will be restored.
As part of the plan, which has yet to be finalised, the administration is considering closing at least 27 U.S. diplomatic missions, primarily in Africa and Europe, according to a separate internal memo seen by Reuters. Of those, 10 are embassies and the rest are consulates.
The State Department, the White House, and the OMB did not immediately respond to requests for comment.
These deliberations come as the Trump administration, along with Elon Musk’s Department of Government Efficiency (DOGE), pushes for a rapid and massive downsizing of the federal government. This includes cutting billions in spending and laying off thousands of employees.
During Trump’s first term, he proposed cutting about one-third of U.S. diplomacy and foreign aid budgets, though Congress—responsible for setting the federal budget—pushed back on those plans.
The OMB Passback summary reviewed by Reuters recommends a FY2026 State Department budget of $28.4 billion, down from $54.4 billion in the current fiscal year. It also proposes reducing foreign assistance distributed by the State Department and the U.S. Agency for International Development (USAID) from $38.3 billion to $16.9 billion.
According to the document, any requests for revisions “must be explicitly appealed” by noon on Tuesday.
The Passback also states that the administration plans to shut down USAID, merge some of its functions into the State Department, and terminate programs deemed “duplicative or inconsistent with administration priorities.”
The administration and DOGE began dismantling USAID in February. Since then, more than 5,000 programs have been closed, hundreds of contractors have been fired, and termination notices have been sent to thousands of staff members.
By Adama Makasuba
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