Review of the FY26 Department of State Budget Request

Senate Foreign Relations Committee
419 Dirksen

05/20/2025 at 10:00AM

Full committee hearing.

Witness:

  • Marco Rubio, Secretary of State, U.S. Department of State
Department of State and U.S. Agency for International Development (USAID)
Program Name $ Change from 2025 Enacted (in millions) Brief Description of Program and Recommended Reduction or Increase Enacted
Increases
America First Opportunity (A1OF) Fund +2,900 Support India and Jordan; repatriations; counter China and other near-peer rivals; and fund new activities.
Development Finance Corporation +2,820 The Budget increases the U.S. International DFC. This investment includes $3 billion for a new revolving fund to allow DFC to recycle any realized returns from its initial investments without further appropriation.
Cuts, Reductions, and Consolidations
Economic Support Fund, Development Assistance, Democracy Fund, and Assistance for Europe, Eurasia, and Central Asia -8,326 The Budget eliminates funding for these programs and replaces them with the single A1OF and the DFC. International Disaster Assistance,
Migration and Refugee Assistance, and Emergency Refugee and Migration Assistance (ERMA)—International Humanitarian Assistance (IHA) -3,207 The Budget reduces disaster assistance. The Budget provides $1.5 billion in ERMA for the President to use at his discretion and consolidates accounts into a new $2.5 billion IHA account.
State and USAID Operations -2,462 Consistent with Executive Order 14169, “Reevaluating and Realigning United States Foreign Aid,” the Budget reorganizes USAID into the Department of State.
International Narcotics Control & Law Enforcement (INCLE) -1,160 The majority of INCLE funds go to reforming criminal justice systems in foreign governments, rather than to narcotics enforcement, which is primarily undertaken by: Drug Enforcement Administration (DEA); Central Intelligence Agency; Federal Bureau of Investigation (FBI); Department of Homeland Security (DHS); and Department of Defense (DOD) elements. The Budget eliminates rule-of-law programs, while providing $125 million to fund programs that support counter-drug, organized crime, and border security missions.
Peacekeeping Missions -1,614 The Budget does not provide funding for United Nations (UN) and other peacekeeping missions.
Assessed and Voluntary Contributions to International Organizations -1,716 The Budget pauses most assessed and all voluntary contributions to UN and other international organizations, including for the UN Regular Budget, UN Educational, Scientific and Cultural Organization, and the World Health Organization. This is consistent with Executive Order 14199, “Withdrawing the United States From and Ending Funding to Certain United Nations Organizations and Reviewing United States Support to All International Organizations.” The President can choose to fund these international organizations out of the A1OF if he chooses.
Educational and Cultural Exchanges -691
Transition Initiatives (TI) -75 TI funds short-term assistance that aims to shape political outcomes in countries. The Budget eliminates the TI account.
Complex Crisis Fund -55 The Complex Crisis Fund is a fund for nation-building projects. The Budget eliminates this account and redirects crisis funding to the IHA and ERMA accounts.
National Endowment for Democracy (NED) -315 The Budget eliminates funding for NED.
Global Health Programs/Family Planning -6,233 The United States is the largest global contributor to programs that provide family planning. The U.S. President’s Emergency Plan for AIDS Relief funding is preserved for any current beneficiaries.
Food for Peace (Title II) -1,619 The Food for Peace program spends $1.6 billion to ship food overseas.
Contribution to the Global Environmental Facility and Climate Investment Funds -275 The Budget proposes to eliminate contributions to the Global Environment Facility and the Climate Investment Funds.
Contributions to Multilateral Development Banks (African Development Bank, African Development Fund) -555 Consistent with Executive Order 14169, “Reevaluating and Realigning United States Foreign Aid,” the Budget proposes to eliminate contributions to the African Development Fund. The Budget also includes $3.2 billion over three years for the U.S. Government contribution to the International Development Association.
Other Treasury International Reductions -86 The Budget proposes to eliminate several of the Department of the Treasury’s international assistance programs, including the Debt Restructuring account, and contributions to the International Fund for Agricultural Development and the Global Agriculture and Food Security Program.