As the U.S. State Department’s reorganization takes shape and USAID’s functions are absorbed, a fundamental question emerges: Will long-term development remain a pillar of U.S. foreign policy or be eclipsed by short-term geopolitical aims?
What was once a hybrid system, balancing development goals with foreign policy interests, is being structurally recast into a diplomacy-first model. The State Department’s 2025 plan, previewed in its reorganization blueprint and recent congressional notifications, would officially consolidate foreign assistance under State Department authority. Programming would be centralized in Washington and more tightly aligned with national security and economic objectives.
Secretary of State Marco Rubio has framed the changes as essential to building an “America First State Department,” emphasizing efficiency and control. Meanwhile, the fiscal 2026 president’s budget request proposes cutting international affairs spending by nearly 50%, including the cancellation of over $21 billion in previously appropriated funds. Sectoral accounts for global health, food security, democracy, and peacekeeping face deep cuts or elimination, with remaining funds consolidated into new State Department-managed vehicles.
About the author
Benjamin Feit
Ben Feit is the founder of ReThink Associates and president of Pope Solutions, where he advises government contractors and mission-driven organizations. With over 30 years of experience, he has designed, led, and implemented development programs across Africa, eastern Europe, and the Middle East, supporting governance transitions and institutional capacity. A former CEO and chief growth officer, Ben has also driven strategy, growth, and organizational transformation. For the past 15 years, he has taught graduate courses on foreign aid policy and practice at Georgetown University’s School of Foreign Service.
