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Dear Board of Directors,

ICYMI: Today’s POLITICO<https://www.politico.com/story/2018/02/07/tillerson-state-department-restructuring-downsizing-397612> article, after a year on the job, Secretary Tillerson apparently is substantially scaling back his restructuring plans within the Department. As we have discussed, some at Foggy Bottom attempted to merge State and USAID – and that didn’t work. Now, an effort to move forward on “16 keystone priorities” seems to have stalled.

This week, the once “sweeping overhaul” will be replaced by a much more targeted “Impact Initiative” – focused on updating technology systems and improving training. The State Department announced that they’re no longer pursuing a joint State Department + USAID initiative, leaving each agency’s internal reforms proceeding on separate tracks. The only item that seems to still create tension is the State Department exerting control over USAID’s budget and planning effort, particularly at the regional bureaus.

Budget Update
Major happenings on the Budget front present serious implications for us in FY18. While we are pleased that a budget deal was reached, we’re very concerned that the agreed upon levels for OCO (the Overseas Contingency Operations account) are $8 billion below current levels. This means that of the new $63 billion non-defense appropriations, Appropriators must allocate enough funds to the International Affairs Budget in order to minimize any further cuts. Tall order but we are on it.

We’ve been on the Hill all day mobilizing and will be providing a more detailed budget update tomorrow, following any votes tonight as the shutdown clock ticks ever closer.

More soon.

Liz
Liz Schrayer, USGLC