Trump Administration Releases FY18 Budget

On May 23, the Trump administration released its recommended budget for Fiscal Year (FY) 2018. “A New Foundation for American Greatness” includes sharp increases for defense and border security, while drastically cutting nondefense discretionary spending.

Overall Foreign Assistance was cut approximately 32 percent, with a cut of 26 percent to global health programs at USAID and the State Department. Of note, funding for family planning, vulnerable children, and the HIV/AIDS program at USAID were zeroed out.

Also of concern, is the zeroing out of the Development Assistance Account, USAID’s core poverty reduction tool and which includes programs for food security, WASH, and education among others. The administration proposes to roll development assistance into the Economic Support Funds to create a new account: Economic Support and Development Funds. This account would be administered by the State Department, which places more importance on strategic objectives and partnerships and minimizes the importance of development in how the U.S. engages globally.

Global health at the Department of Health and Human Services did not fare any better. The National Institutes of Health is facing a 21 percent cut, with the Fogarty International Center zeroed out. An approximate 20 percent cut was proposed for Global Health at the Centers for Disease Control and Prevention.

As the process moves to Capitol Hill, GHC will follow the appropriations process. From our meetings with Congressional offices, we know that global health and foreign assistance is widely supported, and the initial reaction from Congress to the President’s budget indicates that the final numbers will look much different.

Appropriations Budget Table (as of May 2017)

Key accounts (in thousands):

* Includes $250 million from remaining Ebola response funds
** Funding from remaining Ebola response funds
*** The International Organizations and Programs (IO&Ps) is zeroed out. UNICEF will most likely be funded through Maternal and Child Health.