Management Family FY26 Budget Posture Hearing

Defense Posture and Global ThreatsHouse Subcommittee on the Middle East and North Africa · 2025-07-16 · 119th Congress
The House Subcommittee on the Middle East and North Africa held this hearing to review the State Department's fiscal year 2026 budget request for its "M family" management bureaus and to examine the department's recent reorganization and reduction-in-force (RIF). Begins at 0:05:55
Transcript
Highlights

Title

State Department management bureau budget and workforce reductions

Purpose

The House Subcommittee on the Middle East and North Africa held this hearing to review the State Department's fiscal year 2026 budget request for its "M family" management bureaus and to examine the department's recent reorganization and reduction-in-force (RIF). Acting Under Secretary for Management José Cunningham testified on the $28.5 billion budget request, while members — especially the ranking member — pressed him on the process and impact of the layoffs of roughly 1,300 employees the previous Friday. Begins at0:05:55

Who spoke

Subcommittee Chair0:05:55: Opened the hearing on the M family's FY26 budget posture0:05:55, later questioned Cunningham on social-media vetting funding0:19:05, the $81.7 million Iraq security funding cut0:22:38, the SCORE process for high-threat posts0:36:34, and cyber security/counterintelligence integration1:00:38.

Rep. Sherilis McCormack (D-FL), Ranking Member0:08:53: Said 1,300 employees received RIF notices last Friday with little notice, some stranded overseas with confiscated passports0:09:180:10:45; said the reorganization was led by only 10 people, several without foreign-affairs experience0:11:12; later pressed Cunningham on the 15% cut target0:55:54, disputed his claim of no cuts to consular affairs0:57:06, and asked about reduced Syria expertise as the U.S. reopens its Damascus embassy0:58:02.

José Cunningham, Acting Under Secretary for Management, State Department0:14:09: Presented the $28.5 billion FY26 request, including $11.3 billion for diplomatic engagement and $5.5 billion in consular fees0:15:140:16:58; said the RIF was "data-driven," based on positions and functions rather than individuals0:26:170:48:51; said consular affairs was not cut in the reorganization0:55:22 and that DEI initiatives have been eliminated department-wide0:43:49.

Rep. Isa (R-CA)0:30:26: Argued RIF'd employees actually received months of notice due to a court delay0:30:26; pressed for harmonizing State-Homeland Security visa authority0:31:48; detailed embassy construction overruns, including 24 embassies under construction, 15 delayed more than two years, and a Lebanon embassy six years overdue and twice its budget0:33:34.

Rep. Mume (D-MD)0:38:07: Asked whether the layoffs would harm U.S. diplomatic capability and whether an impact assessment had been done0:40:010:41:35; asked about the status of four open GAO recommendations on DEI and accessibility, prompting Cunningham to confirm DEI programs were eliminated0:43:20.

Rep. Sherman (D-CA)0:44:47: Asked whether the State Department had analyzed the economic cost of slow visa processing for business and tourist applicants0:45:35; challenged Cunningham's one-month median wait-time figure, citing four-to-six-month delays for constituents from India and Pakistan0:46:37; argued the RIF fired high performers in eliminated functions while retaining weaker performers elsewhere0:48:19.

Rep. Keating (D-MA)0:50:28: Questioned what message mass firings send to prospective foreign service recruits0:50:28; asked about cuts to consular offices in countries like France and disputed Cunningham's denial of cuts to fraud-prevention and consular-systems offices0:54:53.

Unnamed committee member (New York)0:55:22: Yielded his time to Ranking Member McCormack for further questioning.

Key moments

McCormack said RIF notices were issued with only hours to pack up, no performance reviews, and that some overseas employees had passports confiscated and were stranded0:10:140:10:45.

McCormack cited Trump administration staff acknowledging the reorganization was led by just 10 people, many without foreign-affairs policy experience0:11:12.

Cunningham said the $28.5 billion FY26 request is about 48% below FY25, saving roughly $20 billion, partly by closing Baghdad's fixed and rotary-wing aircraft operations0:23:170:24:08.

Isa detailed embassy construction failures: 24 embassies/consulates under construction, at least 15 delayed more than two years, and a Lebanon embassy six-plus years overdue at twice its original cost, forcing the U.S. to rent 40 separate buildings there0:33:340:34:04.

Cunningham said the RIF process looked at "positions... not names... not titles," matching organizational structure to the "America First" agenda0:26:170:49:01; Sherman countered this could fire top performers while retaining underperformers simply based on which function box they occupied0:48:190:49:28.

Sherman pressed on whether economic harm from visa delays was ever analyzed; Cunningham said yes and cited a one-month median wait, which Sherman disputed using examples of four-to-six-month delays for applicants from India and Pakistan0:46:070:46:37.

Cunningham confirmed 36 months of open GAO recommendations on DEI/accessibility remain unaddressed and stated DEI initiatives have been eliminated across government, including at State0:43:200:43:49.

McCormack and Cunningham directly disagreed on whether consular affairs was cut in the reorganization, with McCormack citing conflicting reporting0:55:220:57:06.

Cunningham said Ambassador to Turkey Tom Barrack, also special envoy to Syria, has made trips to Damascus to meet Syria's president as the U.S. works to reopen its embassy there, amid McCormack's concerns about reduced regional-expert staffing0:59:42.

Cunningham said the department has identified and responded to two nation-state cyber attacks recently and has consolidated separate bureau IT shops under a single chief information officer1:01:161:01:35.

Metadata

CommitteeHouse Subcommittee on the Middle East and North Africa
Chamber / CongressHouse · 119th Congress
Date2025-07-16
TypeHearing
Witnesses
The Honorable José Cunningham — Acting Under Secretary (M), U.S. Department of State
Videoyoutube
Transcript134 caption blocks · 9,345 words · 1:03:21 runtime
EventCongress.gov 118500