Subject: Latest update: Leaked State Department document
From: "Liz.Schrayer" <[email-masked]>
To: "Liz.Schrayer" <[email-masked]>
Date: Fri, 28 Apr 2017 14:58:18 +0000

Dear Board of Directors,

With Congress back in town this week - and the vote today on a likely one-week stopgap - there is much to share, including the troubling news from the leaked internal State Department document that sheds light on the actual details of the Administration's budget cuts and Bloomberg's latest report<https://www.bloomberg.com/politics/articles/2017-04-28/tillerson-said-to-seek-9-cut-to-u-s-state-department-workforce> that Secretary Tillerson plan to cut 2,300 staff from the State Department. Things you will want to know:

1. Bipartisan Congressional Letter. On the good news front (yes, there is some good news), the Congressional firewall of opposition continues to grow. Before recess we got behind an effort led by Senators Durbin (D) and Young (R) to organize a letter of support, and yesterday they sent their bipartisan letter - signed by 43 Senators - to the Budget and Appropriations Committees. It was timed to influence the "302b allocations" urging them to provide "robust funding" for the International Affairs Budget and called proposed cuts "shortsighted, counterproductive, and even dangerous." Note that many of our usual champions didn't sign, because they sit on the Committees the letter was sent to and won't sign "letters to themselves." The letter is already picking up press coverage in the AP, POLITICO<http://www.politico.com/story/2017/04/27/bipartisan-senate-against-cuts-international-affairs-237697>, and the Washington Examiner<http://www.washingtonexaminer.com/43-senators-rally-against-trumps-foreign-aid-cuts/article/2621494>.

2. Very Troubling Leaked Document. As for the 15-page State Department budget document (attached), we have learned that the Administration has already made changes and more may be on the way before the full budget release later in May (the document in Foreign Policy was dated April 6th). Regardless of any changes, the document sheds light on the draconian impact the FY18 budget proposal would have on programs, confirming the worst of the rumors we've heard and provides details to the Administration's priorities and directions with country specific details.

Lindsay will be sending a more detailed Budget Update out later today, but check out our top takeaways from the document down below.

3. Tillerson's Cuts. The reports out today<https://www.bloomberg.com/politics/articles/2017-04-28/tillerson-said-to-seek-9-cut-to-u-s-state-department-workforce> don't bode well as it appears Secretary Tillerson is looking to cut 2,300 diplomats and civil servants in its worldwide workforce - 1,700 through attrition and 600 through buyouts. He plans to survey the entire 75,000 employee base and give a speech before the staff marking his first 90 days. Much has been reported how he has been slow to hire his top political staff, and largely relies on a small team. No news of him actually visiting embassies or USAID missions yet as part of the survey.

4. Recess Wins. In other news, a few quick items of our team's full court press during the Congressional recess - it's really impressive:

  *   IN-DISTRICTS. While many lawmakers avoided holding town halls during the recess, the USGLC and our coalition partners held 32 in-district meetings with members of the Appropriations Committees and Congressional leadership over the last several weeks. More expected in May.

  *   OP-EDS. Watch for a record number of local op-eds to appear in key districts aimed at key policymakers. First to land: Speaker Ryan's district in Wisconsin<http://www.gazettextra.com/20170421/other_views_leading_globally_matters_for_wisconsin>; Senators Cornyn and Cruz state in the Houston Chronicle<http://www.houstonchronicle.com/opinion/outlook/article/Natsios-Maintaining-foreign-aid-keeps-America-11098619.php> by fellow Texan and former USAID Administrator Andrew Natsios; and Senator Portman will soon read one in the Columbus Dispatch. And be sure to read Bill Lane's op-ed on Plan Colombia in the Wall Street Journal<https://www.wsj.com/articles/colombia-is-a-smart-power-success-story-1493075242>.

  *   STATE EVENTS. Big crowds for our events: First-ever Washington state event drew 200 state leaders with Rep. Adam Smith; first-ever Northern Virginia area event with Rep. Gerry Connolly; and Rep. Trent Franks in Arizona on May 11. Tons of press, including this piece in the Alexandria Gazette<http://www.alexandriagazette.com/news/2017/apr/24/leading-globally-matters-locally/>.

5. Chairman Corker Finally Speaks Out. Corker, along with Senator Coons, visited the Bidi Bidi refugee camp in Uganda - home to more than 270,000 fleeing violence from South Sudan - and Corker finally spoke out publically against the budget cuts (and yes, I have been nagging him on this!): "If we use the 1% we spend on foreign aid wisely, we can help keep our men and women in uniform out of harm's way." Given Corker's relationship with Tillerson, this is a very helpful development.

Our efforts to engage the Administration continue - but it's really hard! We finally got into the State Department, and had our first meeting with Secretary Tillerson's Chief of Staff. It was a tough meeting and I will share more details in-person at our upcoming Board meeting.

Over the recess, I was fortunate to participate in a fascinating trip to India and Nepal as a guest of CARE with Senators Coons and Merkley and Senator Graham's top legislative aide. I look forward to sharing some insights and hearing about your travels. We have a great deal to discuss in May, and are working hard to line-up a strong program. I thank you for your patience as we finalize the schedule. Keep you posted.

Liz
Liz Schrayer, USGLC

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TOP TAKEAWAYS FROM LEAKED BUDGET DOCUMENT

  *   Expect Mission Closures and a Refocus on "Countries of Greatest Strategic Importance". The leaked document sheds light on the Administration's plans to shutter or greatly reduce our footprint in 20 countries, with details of development, economic, and global health funding requests. We know that the full list of missions to be closed or shuttered is well over 30, so this document does not give the full picture but, some of the countries that will see major cuts or complete elimination include:
     *   Africa - Central African Republic, Mauritania, Niger, Sierra Leone
     *   Asia - Laos, Marshall Islands, Thailand, Timor-Leste, Azerbaijan, Sri Lanka, Turkmenistan
     *   Europe - Belarus, Montenegro
     *   Western Hemisphere - Brazil, Cuba, Ecuador, Jamaica, Nicaragua, Paraguay, Venezuela

  *   Development Assistance Zeroed Out, Programs Shift to Economic Support Funds (ESF). As had been rumored, funding for USAID's Development Assistance (DA) account is zeroed out and combined with the State Department's Economic Support Fund. This tracks with rumors that the Administration is considering reducing the autonomy of USAID and will have significant impact on how programs are prioritized and carried out.

  *   Global Health Sees Significant Cuts. Total global health funding would see a cut of 25%, according to the leaked document. Gavi, the Vaccine Alliance is funded at $290 million, which fulfills the U.S. commitment to the organization. Few other global health programs are spared from cuts, including the International AIDS Vaccine Initiative, neglected tropical diseases, and multidrug-resistant tuberculosis - all of which take steep cuts in the leaked document.

  *   Funding for Food Security Slashed. The Bureau for Food Security is targeted for a 68% funding cut. While the leaked document does not specifically mention the Feed the Future initiative, it is likely to be drastically reduced given the proposed cut to the Bureau - a concerning development at a time when we are facing four famines impacting more than 20 million people.

  *   Innovation and Women Offices on the Chopping Block. The leaked document proposes an 86% cut to USAID's Global Development Lab and eliminates funding for the Global Women's Office at the State Department - both of which would surely be met with bipartisan opposition on Capitol Hill.

  *   Plenty of Uncertainty Remains. The document did not address every area of the International Affairs Budget such as the MCC, Peace Corps, and some of the security accounts. We will provide a full update at the Board meeting - but for now, the picture is grim