US budget proposal slashes foreign aid, shifts diplomatic focus

Washington: The Trump administration’s proposed fiscal year 2027 budget seeks a sharp overhaul of US diplomacy and foreign aid, with steep cuts to international programmes and a renewed focus on strategic competition and national interests, according to the official White House document.

The budget requests $35.6 billion for the Department of State and other international programmes, a “30-per cent decrease from the 2026 enacted level,” signalling a major retrenchment in US global assistance.

It says the plan aims to “overhaul how the United States conducts foreign assistance to root out fraud and abuse” and ensure that “every taxpayer dollar makes Americans safer, stronger, and more prosperous.”

At the core of the proposal is a new $5 billion “America First Opportunity Fund,” designed to support priorities such as “ending mass illegal immigration; securing critical mineral supply chains; and countering adversarial expansion.”

The emphasis on critical minerals reflects Washington’s growing strategic competition with China, as the budget proposes nearly $13 billion to “rebuild and secure the critical mineral supply chains” that were “ceded to America’s adversaries by earlier administrations.”

The document also highlights targeted partnerships with key allies, stating the fund would support countries “that commit to advancing American interests,” including Jordan and the Philippines.

In a major shift, the budget reduces traditional humanitarian and development assistance. Funding for humanitarian programmes is cut by $2 billion, with resources redirected toward efforts that “reduce illegal migration” and align more directly with US national interests.

The long-running Food for Peace programme is proposed for elimination, with the administration arguing it is inefficient and slow, noting deliveries can take “an average of 4-6 months to arrive at its destination.”

In the proposal, global health funding is also restructured, with $5.1 billion allocated under a new “America First Global Health Strategy,” aimed at reducing administrative costs and shifting recipient countries toward “self-reliance.”

The budget further proposes deep cuts to international organisations, including reduced funding for United Nations programmes and the elimination of support for the World Health Organization.

It argues that the US has paid “nearly 27 per cent of the UN’s entire global peacekeeping budget,” describing it as above America’s “fair share.”

The plan also seeks to eliminate funding for the National Endowment for Democracy, describing it as “an unchecked, partisan organization” that has funded programmes abroad misaligned with US policy.

In its budget the White House prioritises security-linked assistance, including $1.2 billion for international narcotics control and law enforcement to counter transnational crime and strengthen cooperation with global partners.

IANS