• Internal memo proposes cutting State Department and USAID budget by nearly 50%.
• Significant reductions include funding for humanitarian assistance and global health.
• Proposals to close 10 embassies and 17 consulates worldwide.
• Congress must approve cuts, which may face bipartisan opposition.
• State Department downplays reports, emphasizing no final decisions made.

An internal White House memo proposes cuts to the budgets of the State Department and the U.S. Agency for International Development (USAID) of nearly half, targeting $28.4 billion for fiscal 2026, down from $54.4 billion in the previous year, according to The Hill.

The proposed cuts would result in a 54% reduction in humanitarian assistance and a 55% decline in global health funding. Notably, nearly 90% of funding to international organizations would also be eliminated, with full cessation of support to the United Nations and NATO, the Channel News Asia reports.

The memo indicates the closure of 10 embassies and 17 consulates across the globe, which includes missions in countries like Eritrea and Luxembourg as well as significant cuts to educational and cultural exchange programs such as the Fulbright Program. Critics, including the American Foreign Service Association, describe these moves as "reckless and dangerous," reflecting concern over the diminishing U.S. diplomatic presence, notes Le Monde.

The timeline for these budget decisions remains uncertain, with Congress needing bipartisan support to approve the cuts proposed by the Trump administration. Despite the significant scale of these potential changes, State Department spokeswoman Tammy Bruce emphasized that "there is no final plan, final budget," indicating ongoing discussions within the administration, according to TRT Global.

Lastly, the proposals to merge USAID into the State Department are indicative of a broader shift in U.S. foreign policy approach and funding priorities under the current administration, which aims to cut billions in spending, as analyzed by TRT Global.