FY26 State Department Posture: Management and Resources

Defense Posture and Global ThreatsHouse Foreign Affairs · July 15, 2025 · 119th Congress
The House Foreign Affairs Committee held this hearing to examine the State Department's FY2026 budget request and Secretary Rubio's ongoing reorganization, including the absorption of USAID's functions, the recent reduction-in-force of roughly 1,300 employees, and the division of duties between the Deputy Secretary for Management and Resources and the Deputy Secretary for Management. Begins at ▶ 0:55:53
Transcript
Highlights

Title

FY26 State Department Budget, Reorganization, and Mass Layoffs

Purpose

The House Foreign Affairs Committee held this hearing to examine the State Department's FY2026 budget request and Secretary Rubio's ongoing reorganization, including the absorption of USAID's functions, the recent reduction-in-force of roughly 1,300 employees, and the division of duties between the Deputy Secretary for Management and Resources and the Deputy Secretary for Management. Deputy Secretary Michael Rigas testified as the sole witness, defending the reorganization as a cost-saving, mission-focused effort, while Democratic members pressed him on layoffs, foreign aid cuts, and unanswered oversight requests. Begins at▶ 0:55:53

Who spoke

• Chairman Brian Mast (R-FL)▶ 0:55:53: Opened by arguing the State Department needed a leaner, "America first" structure, citing the department's budget growth from $9.5B in 2000 to over $55B under Biden▶ 0:57:14 and criticizing the Afghanistan withdrawal▶ 0:58:31; later asked Rigas about workforce modernization priorities▶ 1:14:52, a potential State Department CFO▶ 1:17:18, and defense weapons sales reform▶ 1:18:44.

• Ranking Member Gregory Meeks (D-NY)▶ 1:02:14: Called the 1,300 firings a "brain drain" done without a plan or transparency▶ 1:04:02, said the committee could get no rationale for the 15% staffing cut▶ 1:04:32, and cited a colleague's admission that the reorganization was designed by fewer than 10 people▶ 1:06:23; later pressed Rigas on the survey process and workforce feedback▶ 1:22:31.

• Deputy Secretary Michael Rigas▶ 1:09:05: Presented the $28.5B FY26 budget request, a 48% cut from FY25▶ 1:09:22; said the reorganization will eliminate/merge ~45% of domestic offices▶ 1:10:58 and cut ENR and other bureaus into larger units▶ 1:48:15; defended the RIF as merit-based, using competitive-area rankings by seniority, tenure, and skills▶ 2:09:18; said the America First Opportunity Fund would ensure accountability for foreign aid▶ 2:32:52.

• Rep. Brad Sherman (D-CA)▶ 1:31:02: Contrasted Trump-era and Biden-era Afghanistan deaths▶ 1:31:30; got Rigas to say he had "no idea" whether releasing the Epstein files would harm foreign policy▶ 1:32:33; pressed on Voice of America listenership numbers▶ 1:32:52 and confirmed Rigas stood by Rubio's claim no one had died from aid cuts▶ 1:33:54, while citing an estimate of 3.3 million deaths▶ 1:34:08; raised 500 metric tons of expiring food aid set to be burned▶ 1:34:46.

• Rep. Andy Barr (R-KY)▶ 1:36:09: Asked Rigas to confirm the reforms advance US interests rather than "throw good money after bad"▶ 1:38:00, citing Uganda's $500K LGBT-outreach grant preceding a $5B China oil deal▶ 1:39:17.

• Rep. Bill Keating (D-MA)▶ 1:41:02: Criticized the firing of the entire Russia war-crimes investigation team in Ukraine, detailing atrocities including abduction of 20,000 children▶ 1:42:01; also criticized cuts to counterterrorism and NATO-related offices▶ 1:43:23.

• Rep. Young Kim (R-CA)▶ 1:46:52: Questioned the elimination of the Bureau of Energy Resources despite Rubio's statements on energy's foreign-policy importance▶ 1:47:19; asked about returning the Foreign Commercial Service to State▶ 1:49:09 and the status of the Busan, South Korea consulate▶ 1:50:42.

• Rep. Ami Bera (D-CA)▶ 1:51:41: Raised reports of 500 tons of emergency biscuits being incinerated at a cost of $130,000 after $800,000 was spent shipping them▶ 1:52:52; said foreign aid is under 1% of the federal budget▶ 1:56:33 and warned the "trade, not aid" framing abandons America's humanitarian identity▶ 1:55:34.

• Rep. Mikie Sherrill (D-NJ) — not present in this transcript segment (none identified).

• Rep. Chris Smith (R-NJ)▶ 1:25:20: Praised Rubio's NGO criticism▶ 1:25:45 and described years of failed transparency efforts to track USAID subgrantee spending under the Obama administration▶ 1:27:28.

• Rep. Sara Jacobs (D-CA)▶ 2:50:23: Pressed Rigas on how the Global Fragility Act will be implemented after the Conflict and Stabilization Operations Bureau was closed and its ~20 GFA staff fired▶ 2:51:18, asking for a written implementation plan▶ 2:53:31.

• Rep. Madeleine Dean (D-PA)▶ 2:12:37: Challenged Rubio's USAID "eulogy" claims point by point, including that USAID had a "near infinite" budget▶ 2:13:22 and "little to show since the Cold War," citing a Lancet study crediting USAID with preventing 91 million deaths▶ 2:06:10.

• Rep. Susan Wild / unnamed Rep. (identified as "Representative Dean" region) — see above.

• Rep. Jonathan Jackson (D-IL)▶ 2:21:02: Pressed Rigas on the administration's stance on DEI, asked him to define "woke"▶ 2:21:02, and questioned protections for career officers under the 2022 NDAA diversity-recruitment provisions▶ 2:23:04.

• Rep. Jared Moskowitz (R-IN, "Mr. Shreve")▶ 2:25:51: Praised State's constituent-service work on a visa case▶ 2:26:17 and asked how Rigas would restructure foreign assistance around trade-based returns on investment▶ 2:27:15.

• Rep. Sarah McBride (D-DE)▶ 2:30:08: Noted the office monitoring human trafficking was cut 71%▶ 2:30:30 and questioned oversight of the new America First Opportunity Fund▶ 2:32:52.

• Rep. Victoria Spartz / Rep. "Barrett" (R-IN)▶ 2:34:58: Asked about monitoring agricultural commodity aid to prevent diversion by "gangs or thugs" in Africa▶ 2:37:54.

• Rep. Dina Titus (D-NV)▶ 2:39:59: Raised planned closures of consulates including Thessaloniki, Greece, and questioned the legality of unconsulted Foreign Affairs Manual changes affecting RIF procedures▶ 2:43:15.

• Chairman Mast (self-recognized second round)▶ 2:45:09: Asked Rigas to explain the "purpose" of the reorganization in his own words▶ 2:45:32.

• Rep. Sydney Kamlager-Dove (D-CA, "Jacobs" prior / actually "Representative Jacobs" — see above)

• Rep. Pramila Jayapal (D-WA)▶ 3:01:06: Described a Washington-state global-health constituent fired without merit review▶ 3:02:17, cited a study estimating 14 million preventable deaths from global health cuts over 10 years▶ 3:03:06, and questioned Rigas on the Gaza Humanitarian Foundation's four aid sites covering over 140 square miles▶ 3:06:02.

• Rep. Vince Fong ("Representative Vice")▶ 3:06:40: Asked about consolidating IT/CIO systems▶ 3:07:03, modernizing overseas building operations (OBO) contracting▶ 3:08:14, and moving visa decision authority▶ 3:09:37.

• Rep. "Representative Stan" (unclear full name)▶ 3:12:03: Compared US and Chinese overseas development spending ($80B vs. $700B)▶ 3:12:33 and asked about China's expanding diplomatic footprint▶ 3:14:16.

• Rep. "Representative [unclear, Central Valley CA]"▶ 3:22:14: Raised GAO findings of $3.2 million in duplicative cultural-program contracts▶ 3:17:23 and a $1.8 million gender-equity grant report▶ 3:18:20.

• Rep. Jim Costa (D-CA)▶ 3:21:44: Asked about consular affairs staffing and passport/visa processing for constituents▶ 3:22:44, and about eliminating the Food for Peace program's impact on farmers, including Kansas wheat exports▶ 3:26:14.

• Rep. Brad Schneider (D-IL)▶ 3:27:38: Questioned Rigas on how he will measure success against the State Department's mission statement▶ 3:28:04 and whether any country has succeeded by shrinking its diplomatic footprint▶ 3:32:33.

• Rep. Sydney Kamlager-Dove / "Representative Klove" (D-CA)▶ 3:33:49: Focused on the elimination of the CARE office for Afghan relocation efforts, noting the entire leadership team was fired Friday and TPS termination could send Afghan allies back to the Taliban▶ 3:36:00.

• Rep. "Representative" (unclear, follow-on to Klove)▶ 3:38:59: Echoed concerns about closing the CARE office and asked about merit basis for terminations, citing a constituent-employee's strong performance review despite being let go▶ 3:41:38.

• Rep. Joaquin Castro (D-TX)▶ 3:49:30: Questioned whether foreign service officers terminated based on their May 29 position, despite having since moved to new roles (some abroad with families relocated), would be reinstated, arguing the policy wastes millions in training costs▶ 3:49:57▶ 3:51:24.

Key moments

• Mast said 1,300 State Department personnel were laid off the Friday before the hearing, while noting new State hires from 2007–2024 exceeded Border Patrol's mandated agent count▶ 0:57:42▶ 0:58:00.

• Rigas testified the FY26 budget request is $28.5 billion, a 48% ($25.9B) cut from FY25▶ 1:09:05▶ 1:09:22.

• Rigas said the department had over 1,500 domestic office units before reorganization and that the plan eliminates about 100 offices and merges another 100▶ 1:10:15▶ 2:08:01.

• Meeks got Rigas to acknowledge he did not have a written cost-benefit analysis of the reorganization and pressed him to submit one to the committee▶ 1:22:31▶ 1:23:24.

• Sherman highlighted that 500 metric tons of emergency food aid had reached its expiration date and would be incinerated, and that Rigas was "not familiar with that particular story"▶ 1:34:46▶ 1:35:14.

• Rigas confirmed he "would stand by Secretary Rubio's statement" that no one had died as a result of foreign aid cuts, despite Sherman citing an estimate of 3.3 million deaths▶ 1:33:54▶ 1:34:08.

• Rep. Barr cited Uganda's ~$6 million in USAID LGBT-outreach programs preceding Uganda's agreement to a $5 billion China oil deal, which Rigas agreed was not in US interest▶ 1:39:17▶ 1:40:14.

• Rep. Dean cited a Lancet study crediting USAID with preventing over 91 million deaths since the Cold War, directly rebutting Rubio's "little to show" claim▶ 2:06:10▶ 2:06:36.

• Rep. Sara Jacobs pressed Rigas on how the bipartisan Global Fragility Act would be implemented after the ~20-person implementing office was eliminated, with Rigas saying functions would move to regional bureaus without dedicated GFA staff being retained▶ 2:51:18▶ 2:52:14.

• Rep. Castro's exchange: Rigas acknowledged some foreign service officers were terminated based on their May 29 position even after moving to new roles (including overseas with relocated families), and could not commit to reinstating them, saying "the law" may not allow it▶ 3:50:56▶ 3:53:16.

Metadata

CommitteeHouse Foreign Affairs
Chamber / CongressHouse · 119th Congress
DateJuly 15, 2025
TypeHearing
Witnesses
The Honorable Michael Rigas — Deputy Secretary of State for Management and Resources, U.S. Department of State
Videoyoutube
Transcript413 caption blocks · 30,334 words · 3:57:54 runtime
EventCongress.gov 118470