Hearings to examine proposed budget estimates for fiscal year 2026 for the Department of State.

Senate Subcommittee on State, Foreign Operations, and Related Programs

2025-05-20

Summary

The committee convened for a hearing with Secretary Rubio to discuss the State Department's proposed budget and ongoing foreign policy initiatives, particularly focusing on reforms within the department and USAID.[ 00:13:13-00:13:17 ]

Chairman Graham welcomed new members and expressed a commitment to continued bipartisan cooperation.[ 00:13:29-00:13:55 ] Secretary Rubio was praised for his organizational efforts at the State Department, aiming to improve efficiency and responsiveness in foreign policy execution.[ 00:14:40-00:15:23 ]

Themes

State Department and USAID Reform

Secretary Rubio detailed his reorganization of the State Department, emphasizing the goal of having all foreign policy tools, including aid, reside within regional bureaus and embassies for bottom-up decision-making. He expressed a desire for greater nimbleness in responding to global events, streamlining a previously cumbersome approval process that involved numerous boxes to check. The aim is for foreign aid to be driven by frontline diplomatic needs rather than top-down directives, ensuring tools are intertwined and balanced with geopolitical interests. Senator Schatz acknowledged the potential for bipartisan support for reforms aimed at smarter, more strategic investments and reduced overhead, but expressed concerns about the drastic and unilateral nature of the current changes. He emphasized that reforms should be pursued through statutory processes and congressional collaboration to avoid catastrophic real-world outcomes.[ 00:32:54-00:33:09 ]

Chairman Graham supported the reforms to make the system more logical and effective, recognizing the need to change the system for better outcomes.

Foreign Aid Budget and Humanitarian Impact

The proposed budget includes a 48% reduction from the enacted level, with a 62% cut to global health programs.[ 00:26:20 ]

Secretary Rubio stated that while the US would remain the largest foreign aid donor, the cuts aimed to target aid more effectively and eliminate redundancies within what he termed a "foreign aid industrial complex."[ 00:34:27-00:34:30 ] He argued that some projects, such as those with multiple subcontractors, were inefficient and could be delivered directly through embassies.[ 00:34:35-00:35:16 ] Senators Schatz, Collins, and Merkley raised serious concerns about the immediate and long-term humanitarian consequences, citing potential deaths from cuts to programs like PEPFAR, Gavi, and other life-saving aid.[ 00:26:01-00:26:20 ] [ 00:32:33-00:32:45 ] Senator Merkley presented data from studies estimating hundreds of thousands of deaths resulting from the dismantling of USAID, a claim Secretary Rubio strongly refuted as "false" and "fake."[ 01:02:53-01:03:32 ] [ 01:03:43-01:03:50 ]

Geopolitical Priorities

Syria: The Secretary highlighted Syria as a "test case" for the State Department's new approach, noting willingness from the Syrian government to engage with the US, reject Iran, and move in a new direction. He suggested that conditions-based support to Syria could prevent its collapse and continued regional conflict, and indicated a review of its state sponsor of terrorism designation.[ 00:38:37 ]

Iran Nuclear Program: Secretary Rubio supported a policy allowing Iran civilian nuclear power, but only if they dismantle their enrichment program, preventing the capability to produce a bomb.[ 00:39:05-00:39:05 ] Russia-Ukraine War: The US is actively pursuing an honorable and just end to the war, with an upcoming Russian proposal for a ceasefire expected to indicate their seriousness. Concerns were raised about China and India propping up Russia's war machine by purchasing cheap Russian oil, suggesting that tariffs could pressure China to change its policy.[ 00:41:13 ] China's Global Influence: Several senators expressed concern about China's increasing global influence, particularly if the US withdraws from aid programs, potentially creating a vacuum for China to fill with loans rather than humanitarian assistance.[ 00:27:52 ] Secretary Rubio asserted that China lacks the history or capability to deliver humanitarian aid at scale.[ 00:27:32-00:27:52 ]

Congressional Oversight and Collaboration

Many members of the committee emphasized the importance of congressional consultation, transparency, and legislative process for any significant changes to foreign assistance or State Department structure.[ 00:44:14-00:44:22 ]

Senator Murray accused the Secretary of illegal actions, including impounding funds and unilaterally remaking the department without proper congressional authority or consultation.[ 01:18:58-01:19:01 ] Secretary Rubio refuted these claims, stating his actions were legal and that the department had engaged extensively with Congress. Calls were made for clear information on eliminated offices, budget rescissions, and specific agreements, which the Secretary pledged to provide.

The Role of Soft Power

Several senators and Secretary Rubio discussed the importance of "soft power" – foreign aid, diplomacy, and cultural exchange – as a cost-effective way to prevent conflict and advance US national interests.[ 00:54:15-00:54:20 ]

Senator McConnell argued that soft power creates allies and is less costly than war, especially given America's geopolitical adversaries.[ 00:54:50-00:55:03 ] Chairman Graham linked soft power to national security, preventing terrorism recruitment, and maintaining global stability. Secretary Rubio affirmed the State Department's role as a "soft power entity" but stressed that current applications must be more targeted to US national interests and produce tangible impacts.

Tone of the Meeting

The meeting's tone was largely contentious, particularly regarding the State Department's reorganization and significant cuts to foreign aid programs.[ 00:32:33-00:32:45 ]

[ 01:03:32-01:03:34 ] While there were initial expressions of a desire for bipartisanship and collaboration on foreign policy, sharp disagreements emerged over the legality and humanitarian impact of the administration's actions.[ 01:18:58-01:19:01 ] Heated exchanges occurred when senators presented data on estimated deaths due to aid cuts, which Secretary Rubio vehemently denied.[ 01:03:32-01:03:34 ] [ 01:03:43-01:03:50 ] Some members accused the administration of disregarding laws and undermining US leadership, while others defended the reforms as necessary to eliminate wasteful spending and refocus on national interests.[ 01:18:58-01:19:01 ] Despite these strong differences, there were also moments where a shared commitment to certain foreign policy goals, such as ending the Ukraine war and addressing global fragility, was evident, albeit with different approaches.