State Department faces $20B spending deadline as fiscal year end looms

This Week in Global Development · Aug 15, 2025 · 42m

With the U.S. Agency for International Development officially ceasing operations as the main U.S. foreign aid agency on July 1, the State Department now faces the daunting task of spending an estimated $20 billion before the fiscal year ends on Sept. 30 — without the 10,000 staff members who previously managed such distributions. The administration is legally required to spend money appropriated by Congress, or find legal justification for not spending it, as seen in earlier rescission efforts that returned $9 billion to the U.S. Treasury.

Meanwhile, USAID Deputy Administrator for Management…