White House proposal axes UN, NATO funds and halves State Department budget

The Trump administration is mulling a proposal that would slash the State Department budget by $27 billion – nearly in half – and shutter smaller embassies and consulates across the globe. 

The proposal calls for the elimination of funding for more than 20 international organizations, including the United Nations, NATO and the Organization of American States, a diplomatic source in possession of the document told Fox News Digital. 

The U.S. contributed around $13 billion to the United Nations in 2023 and around $3.5 billion to NATO. The proposed budget calls for allocating $2 billion for ‘America First’ priorities. Those coffers could be used for ‘specific partners’ like India and Jordan, according to the document, or broader priorities, like the South Pacific Tuna Treaty. 

However, a State Department spokesperson said Tuesday, ‘there is no final plan, final budget.’ 

The proposal is an early draft and has to pass layers of approval within the administration before it even gets to Congress. Congress can then take it as an outline but ultimately draw up its own budget figures. 

The foreign service travel budget and benefits would be scaled back, and the Fulbright scholarship program would be eliminated.

The document calls for a 2% reduction in diplomatic security, cuts to the inspector general’s office and the closure of smaller embassies in countries such as the Maldives, Malta, Luxembourg and the Central African Republic.

It also proposes a 54% cut to global public health funding, with carve-outs for malaria, HIV, and tuberculosis, and a complete elimination of international peacekeeping funds.

When asked about the budget plan during a State Department briefing, spokesperson Tammy Bruce said, ‘Throughout the history of the United States, everyone has a budget plan and everyone has ideas for budgets. And every president has a budget plan and sends it to Congress. And then Congress either accepts it or they have their own ideas, which happens more often than not.’

‘There is no final plan, final budget,’ she emphasized. 

The Trump administration has moved quickly to dismantle foreign aid, eliminating nearly 90% of USAID projects and merging the agency with the State Department and defunding ‘soft power’ institutions like Voice of America, Radio Free Europe, Radio Free Asia and Middle East Broadcasting networks. 

The White House budget is set to be transferred to Congress next month before the Republican-led House and Senate get to work on passing appropriations bills for each agency of government. 

Meanwhile, agencies are expected to present their own plans for reorganization to the White House this week, outlining what cuts they believe are necessary to further shrink the federal government. The State Department has not yet publicly detailed its plans for downsizing. 

As reports of the cuts emerged, Democrats warned that U.S. adversaries would fill the vacuum left by America around the world. 

The cuts ‘would leave our country alone and exposed and allow China and Russia to fill the vacuum made vacant by this administration,’ according to Sen. Jeanne Shaheen, N.H., top Democrat on the Foreign Relations Committee. 

‘Why in the world would we cut funding for NATO at a moment when war is raging in Europe and security threats on the continent grow?’ she added.

It is not clear whether Secretary of State Marco Rubio endorses the initial proposal. ‘I want to hear from Secretary Rubio directly,’ said Sen. Brian Schatz, Hawaii, top Democrat on the Senate Appropriations subcommittee that handles State funding, calling the reports ‘deeply troubling.’