OMB’s FY 2026 Budget Proposal: Significant Cuts and Strategic Investments

OMB has conveyed its initial FY 2026 Budget to Congress with significant cuts to State and USAID (150 Account). Notable is the proposed establishment of a $2.9 billion America First Opportunity (A1OF) Fund to support “some of America’s most enduring and critical partners such as India and Jordan.” The fund will also focus on “strategic investments” to counter China and other rivals and new activities to strengthen national security priorities. The Development Finance Corporation (DFC) was the other big plus-up to include a $3 billion new revolving fund that will generate returns to sustain the fund without further appropriations.

All other programs, including contributions to multilateral development banks, were significantly cut or zero-ed out. Keep in mind that this is a work in progress as Congress negotiates international programs in the context of many other budget priorities. 

Read the international operations/programs budget details on pages 1-4 of the OMB’s Mandatory Discretionary Funding Changes here.