Trump Seeks Further Funding Cuts From @StateDept/@USAID, This Time From 2017 Budget

Posted: 2:51 am ET


Last December, Public Law No: 114-254 (12/10/2016) was signed into law to provide continuing appropriations for most federal agencies through April 28, 2017. This continuing resolution (CR) was passed and it prevented a shutdown of the federal government that would have occurred when the previous CR expired on December 9, 2016 (at that time, eleven of the twelve FY2017 regular appropriations bills that fund the federal government had not been enacted).  The bill funded most projects and activities at the rate established for FY2017 spending by the Budget Control Act of 2011 including additional emergency, disaster relief, and Overseas Contingency Operations (OCO) funding.

It looks like the House will be in session for eight calendar days in April, while the Senate will have ten days. With six months left in the current fiscal year and while Congress is expected to wrestle once more with that CR next month, the Trump Administration is also seeking cuts from the FY2017 budget.  The “savings” from the proposed cuts in the current fiscal year will reportedly also go to DOD for additional military spending, and to help build that wall.


memo sent by the administration on Friday to the House and Senate appropriations committees provides the first detailed look at the proposed cuts, and is expected to meet resistance as the budget blueprint did from lawmakers who have fewer than a dozen legislative days to craft and pass the trillion-dollar spending legislation to keep the lights on.
All told, the programs overseen by the Labor, Health and Human Services and Education subcommittee would see the greatest reductions, totalling $7.26 billion, followed by $2.88 billion from the subcommittee for State and Foreign Operations, including $1.16 billion to USAID foreign aid programs going to combating climate change, family planning and other global health initiatives.

The list of proposed reductions below is via Politico (see pages 11-12 above for the proposed cuts for the State Department).

Some programs will be slashed while others are zeroed out under the proposed cuts from the State/USAID budget for FY2017. In the case of PEPFAR (Aids) the proposal calls for “slowing the rate of new patients on treatment in FY17.” It slashed funds for peacekeeping operations, family planning/reproductive health, and refugee programs “because of lower projections in FY 2017 of refugee admissions.” Here are some of the most notable programs targeted for cuts this year under Trump’s proposal:

Development Assistance (DA) (-$562M): Proposed savings in the DA account include reducing support for bilateral climate change programs that are part of the previous Administration’s Global Climate Change Initiative. Further savings from the FY 2017 CR level can be achieved by reducing economic assistance in other sectors to programmatically sufficient levels, such as through reductions of up to 20 percent in basic and higher education (which has a large pipelines of unspent funds); biodiversity; democracy, human rights, and governance; agriculture and food security (while still addressing key objectives and priorities in the Global Food Security Act); and other sectors.

Economic Support Fund (ESF) (base) (-$290M): This decrease accepts the topline reduction in the House bill (-$274 million vs. CR), which included zeroing out the GCF. It then also reduces several sectors, including bilateral climate change, basic/higher education, democracy/governance, and economic growth.

President’s Emergency Plan for AIDS Relief (PEPFAR)/Global Health Programs (-$242M): This reduction would achieve savings by requiring PEPFAR to begin slowing the rate of new patients on treatment in FY 17, by reducing support to low-performing countries, by reducing lower-priority prevention programs, or by identifying new efficiencies or other savings.

International Narcotics Control and Law Enforcement (-$200M): This account can absorb a $200 million reduction from the annualized base CR rate with insignificant impact to the account, given carryover, the slow rate of FY 2016 obligations, and resources recaptured through de-obligations, recoveries, and proceeds of sale.

Foreign Military Financing (-$200M): This account can absorb a $200 million reduction from the annualized base CR rate by cutting funding for high income countries and consistent with funding restrictions for certain countries in the FY 2017 House and Senate bills.

International Organizations and Programs (-$169M): This account provides for non-assessed contributions to international organizations. This reduction would eliminate such contributions to most organizations funded through the account including the UN Population Fund and some contributions to climate change programs but preserve flexibility to make contributions to some organizations such as UNICEF as well as those supporting global security functions.

Educational and Cultural Exchanges (-$140M): Reduction or elimination of programs based on the ability to fund outside of ECE, ability to merge with other programs, and legacy programs in high income countries. Scale back of programs to prior year levels and/or 5-10% reductions given budgetary constraints.

Global Health Security (-$72M): This proposal zeroes out global health security programs at USAID in FY 2017 to realize up to $72.5 million in savings. These programs are currently supported with 2-year funds and it is unlikely the agency will obligate a significant portion of these funds under the current CR. This proposal instead seeks legislative authority to repurpose $72.5 million in remaining Ebola emergency funds to support these programs in FY 2017.

Specified Other Global Health Programs at USAID (-$90M):To achieve additional savings, reduced levels for:
• Tuberculosis (-$44.6 million below FY 17 CR)
• Polio eradication (-$7.9 million)
• Nutrition (-$16.3 million)
• Vulnerable children (-$7.5 million)
• Neglected tropical diseases (-$13.3 million)