President Proposes Axing $4.9 Billion from State Department and Aid Budgets
Published Date: 9/3/2025
Notice
Summary
The President sent Congress a plan on August 28, 2025, to cancel $4.9 billion in budget money for programs at the State Department and U.S. international aid. If approved, this would cut government spending by that amount, helping reduce the national deficit and borrowing. These changes aim to tighten the budget while still supporting key international efforts.
Analyzed Economic Effects
2 provisions identified: 1 benefits, 1 costs, 0 mixed.
Cuts to State Dept. and USAID Funding
On August 28, 2025 the President proposed cancelling $4.9 billion in budget authority for programs at the Department of State and the U.S. Agency for International Development. If Congress approves these rescissions, those programs would lose that $4.9 billion in funding.
Reduces Federal Deficit and Borrowing
The proposed rescissions would decrease Federal outlays by $4.9 billion and, if enacted, would reduce the Federal budget deficit and result in less borrowing from the U.S. Treasury. The proposal was transmitted to Congress for consideration on August 28, 2025.
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