State Department official urges consolidation of aid accounts, new flexible fund to empower embassies

A State Department official told a congressional committee that the department plans to consolidate foreign-aid accounts and create a flexible fund to let embassies respond more quickly to crises.

The official said the reorganization would place “the entire toolbox of American foreign policy” within regional bureaus and embassies, allow ambassadors more discretion over which programs to offer host governments and add two consolidated accounts — a global health programs account and a consolidated humanitarian assistance account — alongside a proposed America First Opportunity Fund for rapid, ad hoc needs.

The plan aims to make foreign assistance more responsive to needs flagged by diplomats on the ground and to reduce friction between diplomatic missions and other U.S. agencies such as USAID. “I want the entire toolbox of American foreign policy to reside within the Department of State,” the State Department official said. The official added that many internal approval memos currently contain “30 to 35 boxes”…