Wednesday

06-18-2025 Vol 1995

US State Department Faces Major Reorganization under Trump Administration

The US Department of State is experiencing potentially its most significant reorganization in decades as Congress deliberates over plans that could cut the foreign affairs workforce by 3,400 positions and slash funding for international affairs by 85%.

These proposed changes echo the initial months of President Donald Trump’s first term, where a marked shift in the State Department’s mission and structure began to take shape, reflecting his administration’s priorities.

In 2017, early actions included the establishment of a pseudo-department surrounding the Secretary’s office, which limited broader access and input from experienced State Department officials.

Notably, those who had previously worked on policies under Barack Obama found themselves sidelined or “blacklisted.”

Many critical diplomatic postings remained vacant for extended periods due to a lack of nominations, sending a discouraging message regarding the value of diplomatic expertise.

As President Trump embarks on his second term, the situation within the State Department appears to be deteriorating further.

The hallmark characteristics of his first term are once again in effect—favoring loyalty and ideological alignment over experience and expertise, coupled with an ongoing marginalization of established bureaucratic norms.

During the first term, the State Department lost approximately 10% of its workforce from successive budget cuts, but if Congress approves the latest proposed changes, the impact is expected to be even more severe.

The freeze and eventual integration of USAID received significant attention, but it is clear that the State Department itself is also on the brink of radical transformation.

Effectively executing diplomacy typically involves a willingness to embrace incremental progress, compromises, and partial solutions—an approach that runs counter to President Trump’s preference for straightforward, transactional negotiations.

In February, he issued an Executive Order aimed at overhauling the foreign service, specifically instructing Secretary of State Marco Rubio to enforce the President’s foreign policy agenda, threatening disciplinary action against those who fail to comply.

As the Trump administration continues to outline its restructuring plans, it was announced in April that 132 bureaus and offices would be closed, alongside an overall staffing reduction of 15%, with a deadline set for 1 July for implementation.

By May, Rubio had submitted proposals to Congress detailing plans to slash thousands of positions and merge or close over 300 existing bureaus and offices.

This notification delineates specific objectives behind the reorganization, such as reducing bureaucratic overlap, abolishing functions deemed ideologically incompatible with the administration, and strengthening the Department’s regional offices by transferring management of remaining foreign assistance into their oversight.

With the 1 July deadline approaching, Congress is now engaged in drafting a new bill aimed at reauthorizing and reorganizing the State Department, which would mark its first comprehensive reauthorization in more than two decades.

As far as funding is concerned, the 2026 budget proposal anticipates drastic cuts, potentially bringing international affairs investments to their lowest levels since before World War II.

Cuts of this magnitude—85% reduction amounting to USD$51.7 billion—primarily impact foreign aid initiatives that support global health, democracy, and humanitarian aid, as well as contributions to organizations such as the United Nations, which faces an 83% funding cut.

The proposed budget will be supplemented by new initiatives, such as the “America First Opportunity Fund,” designed to prioritize investments that facilitate the removal of refugees and migrants and counter strategic rivals like China while advancing American economic interests.

Additionally, the budget request incorporates a 9% reduction to the State Department’s account responsible for funding US diplomatic personnel on a global scale.

While specific details regarding the reduction in diplomatic presence remain undisclosed, internal assessments indicate that nearly 30 US embassies and consulates, primarily in Africa and Europe, may face closures, alongside the consolidation of missions across regions from Canada to Japan.

Such measures might appear justified if the global landscape demonstrated increasing stability and security; however, the reality reflects a world marked by heightened geopolitical uncertainties, in which the United States’ influence and military strength continue to ebb.

The core issue at hand is the Trump administration’s trend toward devaluing diplomacy as a critical tool in international relations.

Effective diplomacy requires patience, skill, and a commitment to longevity—qualities that seem misaligned with President Trump’s transactional approach characterized by swift deals and quick resolutions.

Although the upheaval within the State Department has taken a backseat to the ongoing tumult of ‘Trumplomacy,’ the long-term consequences of these efforts to undermine and reinvigorate the US foreign service could prove to be profoundly detrimental, marking a significant shift in one of America’s principal instruments of statecraft.

image source from:lowyinstitute

Abigail Harper