Trump administration proposes reducing foreign aid

Trump administration proposes reducing foreign aid

PanARMENIAN.Net - U.S. president Donald Trump’s vow to put “America first” includes a plan to drastically cut assistance to developing countries, including Armenia, and merge the State Department with USAID, Foreign Policy reports citing an internal budget document and sources.

The administration’s March budget proposal vowed to slash aid to developing countries by over one-third, but contained few details. According to a detailed 15-page State Department budget document obtained by Foreign Policy, the overhaul also includes rechanneling funding from development assistance into a program that is tied closely to national security objectives.

Acting USAID Administrator Wade Warren told employees at a recent staff meeting that administration officials are considering folding the agency into the State Department as part of a review mandated by President Trump’s March 13 executive order on streamlining the executive branch, according to a source within USAID. The order instructs the head of each agency to submit a plan to the Office of Management and Budget director, Mick Mulvaney, “to reorganize the agency, if appropriate, in order to improve the efficiency, effectiveness, and accountability of that agency.”

Since 1992, USAID has provided a broad range of development programs in Armenia, shifting from an initial humanitarian emphasis to assistance for economic, political and social transition. USAID's over 30 projects in the capital Yerevan and all the provinces of Armenia work in five principal areas: democratic governance, economic growth, water and energy management, social protection and health care.

Given the steep bipartisan opposition to slashing foreign assistance, Congress likely will not consent to the entire proposed reduction.

The State Department and USAID declined to comment on potentially merging the two entities, and noted that the White House will release a more detailed budget later this spring. Nonetheless, a USAID spokesperson said “we intend to make the best use of U.S. taxpayer dollars by eliminating programs and prioritizing resources that most advance America’s interests.”

Senior USAID officials have told staff that the agency is attempting to cope with the steep cuts by prioritizing its field offices abroad over its offices in Washington. Nonetheless, the agency still anticipates that the budget proposal will necessitate eliminating 30 to 35 of its field missions while cutting its regional bureaus by roughly 65 percent. USAID currently operates in about 100 countries.

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