On Tuesday, The Free Press had a major scoop: The State Department is launching its biggest shake-up in decades in an effort spearheaded by Secretary of State Marco Rubio.

The reorganization, done with the help of Elon Musk and DOGE, looks to eliminate 132 agency offices dedicated to efforts like advancing democracy and combating extremism. It will also lead to the State Department eliminating hundreds of positions intended for career officials. Additionally, top officials are being asked to reduce their offices by an additional 15 percent.

The Trump administration has begun an aggressive shake-up at the State Department that will close 132 agency offices, including those launched to further human rights, advance democracy overseas, counter extremism, and prevent war crimes.

Peter Marocco, the Trump administration official in charge of dismantling USAID, left a meeting at the White House last week to return to his office at the State Department. But when he arrived, Marocco could not enter the building: security told him he was no longer an employee there, according to a person familiar with the situation.

The Trump administration could cut nearly 50 percent of the State Department’s funding next fiscal year, according to an internal memo laying out a downsizing plan being given serious consideration by department leaders, said two U.S. officials. The plan was drawn up as the White House pressures agencies to make significant budget cuts.

An internal White House memo proposes cutting the budgets of the State Department and U.S. Agency for International Development (USAID) by nearly half in fiscal 2026, according to new reporting from The Washington Post.

The early proposal for the fiscal 2026 budget would allocate $28.4 billion for State and USAID — down $27 billion, or approximately 48 percent, from the $54.4 billion in the 2025 budget, according to the Post.

President Donald Trump's administration is weighing a dramatic reduction in foreign affairs funding, with a proposal to slash the combined budgets of the State Department and U.S. Agency for International Development by nearly half in fiscal 2026, according to an internal memo reviewed by The Washington Post, The Hill reported.

The White House’s Office of Management and Budget has proposed gutting the State Department’s budget by almost 50%, closing a number of overseas diplomatic missions, slashing the number of diplomatic staff, and eliminating funding for nearly all international organizations, including the United Nations, many of its agencies and for NATO headquarters, officials said.

The State Department on Friday formally notified Congress it is effectively dissolving the US Agency for International Development and moving some of its functions under the department.

The reorganization will be done by July 1, the State Department said, sounding a death knell for USAID, a multibillion-dollar agency that fought poverty and hunger around the world.

The shuttering of an agency established by Congress without the legislative branch weighing in is expected to draw legal challenges.

The State Department sent a letter Friday to Congress stating it will be taking over the functions of the United States Agency for International Development by July 1, 2025, effectively terminating all employees and closing the agency.

In a separate memo to employees of USAID, the State Department noted all positions not established by law will be eliminated. This “Reduction-In-Force” will take place on one of two separation dates: July 1 or September 2, 2025.

NewsNation has obtained copies of both documents from a source familiar with USAID operations.

The State Department formally announced Friday it is closing the US Agency for International Development (USAID) after the Trump administration prevailed in a federal court case challenging the Elon Musk-led Department of Government Efficiency’s (DOGE) cost-cutting actions.