Policy Update

Trump's FY2021 budget again proposes deep cuts to US foreign assistance

President Trump's budget proposal for FY2021 proposes reducing the International Affairs Budget (IAB) by 22% as compared to the enacted levels for FY2020.

The IAB funds the State Department, the United States Agency for International Development (USAID), and a host of other foreign assistance agencies and projects, and captures almost all funding for US foreign assistance. Of all US agencies and departments, only the Environmental Protection Agency (EPA) is slated for even deeper cuts. Two notable areas that received increased funding are the new Development Finance Corporation (DFC) and the Women's Global Development and Prosperity Initiative.

Global health programs were slashed by 34% compared to FY2020 levels and operating funds for the State Department and USAID were also cut. Congress will now start its budget and appropriations process which will determine actual levels of funding. The deep cuts in foreign assistance previously proposed by the Trump administration have largely been rejected by Congress.

Budget analysis - USGLC