There’s no way to sugarcoat losing half your resources. And that’s the size of the budget cut that the U.S. State Department — now fused with USAID — faces if the Trump administration gets its way.
Also in today’s edition: A budget-slasher replaces a budget-slasher at the State Department.
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Hitting the Marco
The Trump administration not only expects the State Department to absorb the vestiges of USAID — not so long ago a $40 billion agency with over 10,000 workers — it expects it to do so on a shoestring budget that’s roughly 50% less than the previous year. Oh, and foreign assistance would take a big hit.
Specifically, the proposed cuts total $28.4 billion for the State Department and “former USAID activities,” a plunge of $26 billion — or 48% — from fiscal year 2025, which ends this September, according to an internal memo obtained by Devex. Last year, the U.S. government spent $60 billion on international affairs. But if passed by the U.S. Congress as written, the new proposal would channel $16.9 billion to foreign assistance, a decrease from $21.5 billion this year.
Title II Food for Peace — the flagship U.S. program to reduce hunger by exporting surplus U.S.-grown commodities worldwide? Gone. Funding for the National Endowment for Democracy and United Nations international peacekeeping? Nope. Gavi, the Vaccine Alliance? Forget it.
The proposed cuts are “reckless and dangerous,” says Tom Yazdgerdi, president of the American Foreign Service Association. “Slashing nearly half of the State and USAID activities that our members carry out — alongside hiring and pay freezes and the elimination of Congressionally-mandated priorities — is not fiscal prudence.”
As of publication time, it’s unclear how much of the proposal the State Department has agreed to. Secretary of State Marco Rubio’s signature is required for the budget process to continue, the memo states, after which the plan will be finalized by the Office of Management and Budget, my colleague Elissa Miolene writes. Only then will the proposal be presented to Congress — a move that is expected later this month, according to the memo.
“There is no final plan, final budget, final dynamic. That is up to the White House and the president of the United States as they continue to work on their budget plan and what they submit to Congress,” Tammy Bruce, the State Department’s spokesperson, told reporters yesterday. “These are not known or finalized, or planned. Only President [Donald] Trump has that information, and we’re going to see it soon, I’m sure.”
Read: Trump administration plans to cut State Department funding by half
Trading places
Peter Marocco was a controversial choice to run the State Department’s Office of Foreign Assistance, aka F bureau, given that his apparent mission in life was to gut USAID. His abrupt departure earlier this week may have perked up hopes that someone more charitable to foreign assistance would take his place. But, as with most hopes that aid advocates had for this administration, that didn’t pan out.
That’s because Marocco’s replacement is also an avid budget-slasher.
Jeremy Lewin — a 28-year-old tech entrepreneur — was named acting director of the F bureau. And despite not having any government experience prior to the second Trump administration, Lewin has certainly racked it up over the last few weeks.
First, he joined the Department of Government Efficiency, or DOGE. Then he became instrumental in the dissolution of USAID. And in March, Lewin became both the agency’s chief operating officer and deputy administrator for policy and programs, holding one of the top seats at the same agency he sought to dismantle.
“Frankly it’s just adding insult to injury,” one former USAID staffer tells Devex. “Lewin has proven to be this administration’s henchman and despite being 27/28 and with 3 months of government experience, he has held numerous senior positions at multiple agencies concurrently.”
Read: DOGE staffer takes over at the State Department’s office of foreign aid
Light at the end of the tunnel
After more than three years, countries were finally able to reach an agreement on the pandemic treaty text today in Geneva.
The final day of negotiations, which started on Tuesday, stretched into the wee hours of today as countries debated outstanding texts such as on technology transfer, a critical issue in pandemic talks. Low-income countries wanted to ensure they’re able to produce lifesaving health products such as vaccines in the case of a pandemic, instead of waiting at the back of the line for supplies — as they often did during COVID-19. But surprise, surprise: Wealthier countries wanted any tech transfers to be voluntary and on “mutually agreed terms.”
Member states said the final draft text, which will now go to the World Health Assembly in May for adoption, isn’t perfect. Several member states said they would have liked to see stronger language on some issues. But they hope the text will serve as a starting point.
Details of the pathogen access and benefit sharing system still need to be established — as does the all-important implementation of the agreement.
The delegate from Kenya said during the closing session: “Real work starts now, as what will be required is a true and effective implementation of the text as agreed.”
🎧 Background: Can the pandemic treaty deliver on equity?
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By the numbers
17.6%
—That’s the percentage of the gross national income of Somalia provided by official development assistance, or ODA, according to an analysis from my colleague Alecsondra Kieren Si — compared to just 7.4% provided by government spending. Her analysis of which countries will be most vulnerable to aid cuts based on their current ODA use compared to government expenditures puts Somalia at the top of the list, followed by Afghanistan and the Central African Republic.
Read: Which countries are the most at risk for aid cuts? (Pro)
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Gates-keepers
The American Alliance for Equal Rights, or AAER, has worked to overhaul diversity policies in universities. Now, it’s set its sights on charities — and not just any charity.
The Gates Foundation changed the eligibility criteria of its signature scholarship program after the right-wing activist group argued to the U.S. Internal Revenue Service that the foundation was violating its tax-exempt status by discriminating against white people.
The complaint focused on The Gates Scholarship program, which until now has only accepted applicants who are low-income minority students, my colleague Jesse Chase-Lubitz writes. Now, it’s expanding its eligibility criteria to all Pell Grant-eligible students. (Pell grants are needs-based, but not race-based, federally funded scholarships.)
As the largest philanthropic organization in the world, the Gates Foundation sets an example for other charities. Experts say that AAER’s strategy raises a fundamental question for those charities. “Do you stay underground to live another day? Or do you fight because this is the last stand?” says Philip Hackney of the University of Pittsburgh.
“This shows how fearful [charitable organizations] are right now and how they have to decide what is the best way for them to proceed,” adds Ellen Aprill, a leading scholar of nonprofit tax law. “If the Gates Foundation is going to change, that’s not going to decrease fear.”
Read: Gates alters scholarship rules after complaint of racial discrimination
In other news
The United Kingdom and European Union pledged over $740 million in humanitarian aid for Sudan at a London conference, as the civil war in the African country enters its third year with no ceasefire in sight. [DW]
UNICEF expects its 2026 budget to drop by at least 20% from the $8.9 billion it had in 2024, following deep cuts to global humanitarian aid. [Reuters]
Pakistan has intensified mass deportations of Afghan refugees, with nearly 60,000 crossing back to Afghanistan since early this month, the U.N. migration agency reports. [Al Jazeera]
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About the author
Anna Gawel
Anna Gawel is the Managing Editor of Devex. She previously worked as the managing editor of The Washington Diplomat, the flagship publication of D.C.’s diplomatic community. She’s had hundreds of articles published on world affairs, U.S. foreign policy, politics, security, trade, travel and the arts on topics ranging from the impact of State Department budget cuts to Caribbean efforts to fight climate change. She was also a broadcast producer and digital editor at WTOP News and host of the Global 360 podcast. She holds a journalism degree from the University of Maryland in College Park.
