The US State Department is reportedly considering a proposal to significantly reduce its global diplomatic presence, potentially closing embassies and programmes worldwide, to cut its budget by nearly 50%.
An internal memo, under high-level discussion, outlines plans to drastically reduce funding for international organisations like the UN and NATO, curtail peacekeeping support, and eliminate educational and cultural exchange programmes, including the Fulbright Programme.
These proposals align with President Donald Trump’s push for reduced government spending and a less prominent US role in international affairs.
However, the American Foreign Service Association and former US ambassador Michael McFaul have criticised the plan as “reckless and dangerous” and a “gift to China.”
According to reports, the State Department aims for a $28.4 billion budget in fiscal year 2026, a $26 billion decrease from 2025. This would involve cuts to humanitarian aid and programmes addressing global health issues.

The future of USAID, which Trump and Elon Musk have suggested closing, is also factored into the memo.
While Congress ultimately decides on budget approvals, these proposals are expected to heavily influence budget negotiations.
Secretary of State Marco Rubio’s stance on the memo remains unclear, but his approval is necessary for the cuts to proceed.
The memo suggests closing 10 embassies and 17 consulates, including missions in Eritrea, Luxembourg, South Sudan, Malta, and several in France and Germany.
Consulates in Canada would also be significantly downsized. US missions to international bodies would be merged with existing embassies in their host cities.
The State Department has not yet responded to requests for comment.