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Appropriations subcommittee presses State Department on FY2026 cuts and USAID reorganization
Summary
Members of the House Appropriations subcommittee questioned Secretary Rubio on the Trump administrations proposed FY2026 Department of State budget, a large spending reduction, and a reorganization that moves many USAID functions under State, raising concerns about program terminations, staffing and use of congressionally appropriated funds.
The House Appropriations Subcommittee on National Security, Department of State, and Related Programs heard testimony Wednesday on the Trump administrations fiscal 2026 budget request for the Department of State, including plans to transfer USAID functions into State and to rescind or reallocate large sums from previously appropriated accounts.
The request, which a subcommittee official described as representing "a reduction of about 48%" to the spending proposal, and other witnessesstatements about an "84% cut" to USAID programming, prompted repeated questions from lawmakers about which programs were cut, how congressionally directed funds would be used, and the effects on staff and on ongoing humanitarian and development programs.
Why it matters: Committee members said abrupt terminations and an information gap on the cuts undermine oversight and could disrupt services delivered by U.S. partners worldwide. Several members pressed Secretary Rubio and committee leaders for a clear accounting of programs terminated, funds impounded, and the plan for moving personnel and contracts into the State Department.
Most important facts first: Secretary Rubio told the panel the administration intends to reorganize foreign assistance so regional bureaus and embassies direct aid as part of a broader national-interest strategy, saying, "Our foreign policy has to once again return to the national interest." He described the reorganization as intended to "empower ideas and action at the embassy level" and to give regional bureaus access to a "full toolbox" including aid and diplomacy.
Several lawmakers pushed back, saying the administration implemented large, rapid changes without consulting Congress. Ranking Member Lois Frankel said the review "became a chaotic freeze and termination of over 80% of foreign aid programs," and other members characterized the process as having halted thousands of awards and disrupted services.
Details and debate: Committee Chairman Tom Cole and other Republicans said the reforms aim to eliminate programs the administration views as not advancing U.S. strategic interests. Cole said the subcommittee "supports your efforts... to reorganize and streamline department operations and better integrate programs with our diplomatic and strategic objectives." Several Republican members gave examples of programs they said were outside core security priorities and defended the pause and review as a form of "0-based" budgeting.
Democrats and some Republicans countered that many of the programs were statutorily directed or competitively awarded and that the administration lacked a clear plan for spending existing appropriations. Members repeatedly asked for a detailed list of terminated programs and the criteria used to decide which activities were halted. Representative Laurel (full committee ranking member) and others demanded an accounting of funds the administration had restricted, citing figures committee members described as roughly $40 billion in development and humanitarian funds that they said were currently unavailable for execution.
Staffing and implementation: Members asked what would happen to USAID personnel. Secretary Rubio said some former USAID employees were applying to roles in State and that by July 1 the administration hoped to have staff in place "to assume these responsibilities," but he did not provide firm percentages or a definitive staffing rollup. Members emphasized statutory protections such as Title 5 hiring preferences when functions transfer between agencies and sought commitments that congressionally directed programs would continue in some form.
Oversight and next steps: Lawmakers sought fuller budget documents and asked the secretary to urge the Office of Management and Budget to provide a complete FY2026 package. Chairmen and ranking members asked for a more detailed, annotated spreadsheet explaining why specific contracts or programs were canceled and which would be preserved, and Secretary Rubio agreed to provide additional briefings and to work with committee staff.
Ending note: No formal decisions or votes were taken at the hearing. Members directed the department to provide more detailed budget justifications and to consult with Congress on the disposition of appropriated funds; the subcommittee said it will continue oversight as officials finalize reorganization and budget materials.
