What Trump’s New Budget Says About U.S. Foreign Policy

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Report What Trump’s New Budget Says About U.S. Foreign Policy The president wants to significantly pull back on many of America’s traditional global engagements while spending more on the border and defense. By Lili Pike , a reporter at Foreign Policy , and Rishi Iyengar , a reporter at Foreign Policy . An elderly man and woman sit on the ground, the man on his knees as he sorts through something on the ground. Behind him are a rusted cart and bicycle in front of a paint-smeared concrete wall and a battered corrugated metal sign with the words USAID: From the American people” on it. Signage for the U.S. Agency for International Development is seen on a cargo container beyond people sorting through salvageable items to be sold to junk shops in Manila, Philippines, on Feb. 4. Jam Sta Rosa / AFP via Getty Images My FP: Follow topics and authors to get straight to what you like. Exclusively for FP subscribers. Subscribe Now | Log In Security United States Rishi Iyengar Lili Pike May 2, 2025, 5:05 PM Comment icon View Comments ( 4 ) U.S. President Donald Trump unveiled his budget proposal for the upcoming fiscal year in a letter to Congress on Friday, providing the clearest picture yet of what his administration will prioritize and putting some numbers on the large-scale slashing of the federal government that he has overseen. The budget aims to cut $163 billion in nondefense spending, a 22.6 percent reduction from current levels, the letter said. Trump’s Second Term Ongoing reports and analysis Trump’s “America First” agenda means that many of the biggest cuts impact U.S. foreign policy, particularly at the State Department and the U.S. Agency for International Development (USAID) —the latter of which Trump and his billionaire advisor Elon Musk all but gutted. At the same time, Trump is allocating more than $113 billion to the Defense Department and $43.8 billion for the Department of Homeland Security to bolster Trump’s border security proposals and controversial mass deportations . U.S. President Donald Trump unveiled his budget proposal for the upcoming fiscal year in a letter to Congress on Friday, providing the clearest picture yet of what his administration will prioritize and putting some numbers on the large-scale slashing of the federal government that he has overseen. The budget aims to cut $163 billion in nondefense spending, a 22.6 percent reduction from current levels, the letter said. Trending Articles How Putin Transformed Russia Reflections on the Russian leader’s 25-year reign. Powered By Advertisement How Putin Transformed Russia X Trump’s Second Term Ongoing reports and analysis Trump’s “America First” agenda means that many of the biggest cuts impact U.S. foreign policy, particularly at the State Department and the U.S. Agency for International Development (USAID) —the latter of which Trump and his billionaire advisor Elon Musk all but gutted. At the same time, Trump is allocating more than $113 billion to the Defense Department and $43.8 billion for the Department of Homeland Security to bolster Trump’s border security proposals and controversial mass deportations . Defense spending overall would go up to $1.01 trillion, a 13 percent increase from 2025 levels. The budget proposal—which you can read in full here —does not equal concrete policy and is still subject to approval (and adjustments) from Congress, but it serves as a key indicator of how Trump sees the United States’ role in the world. State Department and USAID Under the new budget, the State Department and other international programs would take the biggest cut at a whopping 83.9 percent ( $49.1 billion ). That includes a cut of $8.33 billion for development, democracy, and economic aid, which the administration describes as “having been funneled to radical, leftist priorities, including climate change, diversity, equity, and inclusion (DEI), and LGBTQ activities around the world.” Since Trump took office, the State Department has already frozen or slashed funding for many of these programs. The budget also proposes a $3.2 billion cut in international disaster relief aid, which the administration describes as previously being at “unaffordable levels.” Those are just two of 15 total cuts that the Trump administration is proposing to State Department and other international programs, with others affecting peacekeeping missions, educational and cultural exchanges, funding for the World Health Organization and other international organizations, and funding for the National Endowment for Democracy. At the same time, the budget boosts spending in a couple of Trump-approved areas. It allocates $2.9 billion to an America First Opportunity Fund, which would “focus on strategic investments that make America safer, stronger, and more prosperous.” The description of the fund is vague but calls for supporting Jordan, India, and other “critical partners” and countering “China and other near-peer rivals.” The fund is described as one of the tools to replace traditional development aid. It also allocates $2.82 billion for the U.S. International Development Finance Corporation (DFC). Created by Congress in 2018 to counter China’s Belt and Road Initiative, the DFC is essentially the United States’ development bank. The budget request reflects the argument popular among many Republicans that the DFC will “reduce reliance on foreign aid.” (Read Foreign Policy ’s coverage of the DFC at its five-year mark here ). Department of Defense Much of the proposed 13 percent increase in overall defense spending comes from $113 billion allocated directly to the Defense Department with a focus on U.S. shipbuilding, countering China’s “aggression” in the Indo-Pacific region, and creating a missile defense system dubbed the “Golden Dome for America.” The budget does not provide a specific number for cuts to the Defense Department’s budget, but says it “ends wasteful spending of taxpayer dollars on woke climate and DEI programs.” Department of Homeland Security The proposal allocates $43.8 billion to “fully implement the President’s mass removal campaign” and finish construction of the border wall in the southwest, among other measures It also cuts $491 million for the Cybersecurity and Infrastructure Security Agency (CISA), which the Trump administration says “was more focused on censorship than on protecting the Nation’s critical systems.” CISA is the primary U.S. cyberdefense agency, tasked with protecting U.S. elections and critical infrastructure from foreign adversaries such as China, Russia, and Iran. Sign up for Editors’ Picks A curated selection of FP’s must-read stories. Sign Up By submitting your email, you agree to the Privacy Policy and Terms of Use and to receive email correspondence from us. You may opt out at any time. Enter your email Sign Up ✓ Signed Up You’re on the list! More ways to stay updated on global news: FP Live Enter your email Sign Up ✓ Signed Up World Brief Enter your email Sign Up ✓ Signed Up China Brief Enter your email Sign Up ✓ Signed Up South Asia Brief Enter your email Sign Up ✓ Signed Up Situation Report Enter your email Sign Up ✓ Signed Up View All Newsletters Department of Commerce The budget boosts funding by $134 million for fair trade. That includes new funding for anti-dumping investigations as well as $122 million for the Bureau of Industry and Security (BIS), a 50 percent increase, intended to protect U.S. technological competitiveness vs. China. That’s a sharp reversal from the $20 million cut to BIS proposed by the Trump administration for fiscal year 2025, which represented a 12 percent reduction that Senate Democrats expressed alarm about given the agency’s central role in enforcing export controls on technology—including semiconductors. Read More Trump sits in an armchair on a stage in front of an American flag, propped heavily on one armrest as he leans to be closer to the crowd as he speaks. The backs of heads of half a dozen audience members are visible in the foreground. What’s Actually on the Table in Trump’s Promised Trade Deals? Negotiating is a drawn-out process—and the first step is deciding what to talk about. Analysis | Dmitry Grozoubinski U.S. National Security Advisor Michael Waltz looks at his phone as he prepares for a TV interview at the White House in Washington on May 1. Trump Announces Cabinet Reshuffle in Signalgate Fallout Mike Waltz has been ousted as national security advisor and now faces a confirmation fight for U.N. ambassador role. Report | John Haltiwanger Other A $275 million cut to international climate work including the Global Environmental Facility and Climate Investment Funds, which the proposal says “promote woke Green New Deal” policies. A cut of $555 million for multilateral development banks, including the African Development Bank and other MDBs. A cut of $17.96 billion to the National Institutes of Health and a $3.59 billion cut for the Centers for Disease Control and Prevention (CDC), although the budget states that global public health and infectious disease surveillance will remain a CDC priority. An increase of $596 million in funding for the Department of Transportation’s shipbuilding and port infrastructure programs. This is part of the administration’s broader effort to counter China’s dominance of the shipbuilding industry. Billions in cuts to NASA programs, including space science, to instead focus on “beating China back to the Moon and putting the first human on Mars.” Formalized funding cuts to the U.S. Agency for Global Media (the parent organization for Voice of America and other state-funded media outlets, including Radio Free Europe and Asia), the U.S. Institute of Peace, and the Woodrow Wilson Center, among others. These organizations have been important centers of research and reporting on China, Russia, and other foreign countries. (Read FP’s reporting on the shutdown of VOA and RFA and the impact on China reporting here .) This post is part of FP’s ongoing coverage of the Trump administration . Follow along here . Lili Pike is a reporter at Foreign Policy . X: @lili_pike Rishi Iyengar is a reporter at Foreign Policy . X: @Iyengarish Read More On Department of Defense | Foreign Aid | Security | U.S. Congress | U.S. Federal Budgets & Deficits | United States Join the Conversation Commenting on this and other recent articles is just one benefit of a Foreign Policy subscription. Already a subscriber? Log In . Subscribe Subscribe View 4 Comments Join the Conversation Join the conversation on this and other recent Foreign Policy articles when you subscribe now. Subscribe Subscribe Not your account? Log out View 4 Comments Join the Conversation Please follow our comment guidelines , stay on topic, and be civil, courteous, and respectful of others’ beliefs. You are commenting as . Change your username | Log out Change your username: Username I agree to abide by FP’s comment guidelines . (Required) Confirm CANCEL Confirm your username to get started. The default username below has been generated using the first name and last initial on your FP subscriber account. 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