Trump Sends the Economy Tanking Over Fight With Fed Chair

Amid the massive cuts proposed by the Trump administration, it’s no surprise that the radical reshuffling seemed like the real thing. Last month, Politico reported that the Trump administration was planning to cut the State Department’s budget by nearly half, zeroing out the funding for programs to promote democratic processes and counter drug trafficking, and shuttering up to three dozen embassies. This proposal would shrink the department’s budget from $54.4 billion in 2025 to $28.4 billion in 2026.

Last week, a memorandum that was part of a broader budget for 2026 that is due to the Office of Budget Management outlined a plan to close 10 embassies and 17 consulates. This includes U.S. missions in Eritrea, Italy, Luxembourg, Malta, Scotland, and South Sudan, as well as five outposts in France and two in Germany.

Politico reported that there was significant reason to doubt the veracity of last week’s memo, which was not consistent with other communications from the Trump administration to Congress and did not follow the typical structure of an executive order.