Federal counterterrorism and financial intelligence enforcement activities face markedly lower funding in the "Big Beautiful Bill" budget under consideration in the Senate. While Commerce is asking for an increase in BIS funding, other areas, including export promotion, are being gutted.
Unusual for a President's budget, no figures are included for the Department of Defense. "For the Department of Defense, this document contains only appropriations language. A separate document containing budget estimates for the Department of Defense will be published in June 2025," according to the White House.
The Federal Bureau of Investigation (FBI) is slated to experience a $560 million decrease in funding, accompanied by a reduction of nearly 1,900 staff positions. FBI Director Kash Patel has expressed that such cuts would significantly hinder the bureau’s capacity to fulfill its mission, particularly in areas related to violent crime and national security.
The Department of Justice’s National Security Division (NSD), responsible for foreign intelligence surveillance and counterintelligence operations, is proposed to have its budget reduced from $133 million to $119 million, along with a loss of 19 full-time employees. John Eisenberg, nominated in February to serve as Assistant Attorney General for the NSD, as yet to be confirmed by the Senate.
The Treasury Department’s Office of Terrorism and Financial Intelligence (TFI), which includes the Office of Foreign Assets Control (OFAC), is proposed to receive $254 million in FY2026, down from $274 million in the previous fiscal year. While specific staffing impacts are not detailed, the reduction could influence TFI’s capacity to combat financial crimes and enforce sanctions. Bay Area fund manager John Hurley, has been nominated as Under Secretary for Terrorism and Financial Intelligence pending Senate confirmation.
The Bureau of Industry and Security (BIS) stands to have it's budget boosted 50 percent, with the added funds dedicated to a doubling of the Export Enforcement line item to $191mn. "The Budget enhances BIS's ability to strengthen, streamline, and manage the U.S. export control system, while increasing BIS's capability to complete effective investigations and assessments that identify the impacts that imports of industry-specific products have on U.S. national security," according to the document.
The increased funding, announced last month in the President's "skinny budget" is expected to fund additional enforcement staff, modernize systems and bolster licensing review capacity.
The document estimates an increase in BIS employment from 539 in 2024 to 740 in 2026.
The International Trade Administration (ITA), on the other hand, is expected to fund the BIS expansion with a one-third cut in resources, principally in the Global Markets (GM) unit. The nearly $250mn cut from 2024 levels can be expected to eviscerate the Department's U.S. Commercial Service, which maintains officers in embassies and consulates worldwide, as well as other commercial diplomacy and export promotion activities. Other arms of the ITA will be funded at roughly the same levels as 2024, implying the bulk of the positions eliminated will be in GM.
The document estimates a decrease in ITA employment from 1,355 in 2024 to 1,085 in 2026.
Minority Business Development zeroed out: "The Budget proposes to eliminate funding for the Minority Business Development Agency (MBDA) as part of the Administration's plans to move the Nation towards fiscal responsibility and to redefine the proper role of the Federal Government," the document reads. From $99mn in 2025 outlays, Commerce budgets $7.25 mn in FY 2026 to "facilitate an orderly closeout of MBDA." 55 positions are to be eliminated.
As previously reported [13863], the proposed reorganization of the State Department will result in the elimination of more than one in five members of the Arms Control and International Security division, according to preliminary reports. Referred to as the "T Family", the Division includes the Bureau of Arms Control Verification and Compliance, the Bureau of International Security and Nonproliferation and the Bureau of Political-Military Affairs (PM).
In addition to monitoring Weapons of Mass Destruction, Piracy, and now, Narcotics trafficking, The T Family administers $118 bn of Foreign Military Sales (FY24) and $200 bn of direct commercial defense sales authorizations.
The cuts to national security programs pale in comparison to the savaging of humanitarian and public diplomacy programs. The budget calls for the elimination of Educational and Cultural Exchange (ECE) Programs authorized under the Mutual Educational and Cultural Exchange Act of 1961 (Fulbright-Hays Act). " In moving the Nation towards fiscal responsibility, the traditional functions of ECE will be eliminated."
Another prominent casualty is Enduring Welcome, a U.S. government resettlement initiative designed to facilitate the relocation of Afghan nationals who supported U.S. operations in Afghanistan, including interpreters and their families. [Stripes.com].
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