Potential FY26 Government Funding Scenarios

Over the last few weeks, Congress has gotten over two major hurdles that have an influence on FY26 appropriations negotiations and possible legislation: the passage of the Big Beautiful Bill, the work on which was sucking the air out of everything else on Capitol Hill, and the $9 billion rescissions package for foreign assistance programs and the Corporation for Public Broadcasting. With these two markers in the rearview mirror, it’s a good time to game out some FY26 funding predictions. 

From the top, it’s important to make clear that there’s a high likelihood a short-term Continuing Resolution (CR) will be passed at the end of September. Neither party will have their full appropriations bills passed, or even written, and if nothing else, the chambers will need more time to find agreement.  

There are two major political dynamics that will play a major role in if and how the government is funded come October:  

• Whether Democrats make good on their threat to walk away from FY26 negotiations in response to rescissions (and the timing of that).   

• How long Republicans are willing to continue funding the government at “Biden-era levels” via a CR, or if this fall will be the moment they cut a deal. More on these dynamics later. 

Where things stand
This week, the House National Security, Department of State, and Other Programs (formerly SFOPS) released its FY26 appropriations bill, which was marked up on July 15 with little fanfare. The bill represents a 22% overall cut to the Department, and Democrats voted unanimously against it. 

Despite this concerning top-line number, the Alliance was pleased to see the Educational and Cultural Exchanges (ECE) line for ECA, which came in at $700.946 million; a far cry from the President’s requested $50 million for FY26.  

In addition to this robust ECA funding proposal, there is also language in the bill requiring OMB to apportion funds to ECA within a set period of 60 days after the bill’s passage. This signals that there is bipartisan awareness of the current hold OMB has on FY25 awards across the government, and they want to use the appropriations process to put in statute some guardrails. The Senate Appropriations Committee is still working on their bill, but the word is that they are pursuing similar funding levels and language to the House. 

Whether either of these bills make it out of committee and to the House or Senate floor remains a big question mark. But the House’s mark signals that there is still strong bipartisan support for ECA and its programs, which we can work with. 

The politics of it all
As mentioned above, there are two important political dynamics playing out that will have an outsized impact on if and how the government is funded in FY26. 

First, both Senate Minority Leader Chuck Schumer and Appropriations Vice Chair Patty Murray have said publicly that if the rescissions package passes, Democrats might walk away from FY26 negotiations. Now that rescissions have passed, it remains unclear if they are going to double down on that threat, or if they are going to wait and see what the Administration’s next move is.  

This is a big decision for Schumer, given the fiasco that was the CR fight in March that resulted in major backlash from the Democratic base. Does it make sense for Democrats to stop the appropriations process now, two months before the deadline, over this relatively small package, or should they hold their cards and wait for the Administration’s next play? 

Next week, Senator Thune is going to send up a test balloon by teeing up a vote on the Military Construction-Veterans Affairs (MilCon-VA) appropriations bill on the floor, which was voted out of committee with a large bipartisan margin. Between now and that vote, Minority Leader Schumer has to decide whether his caucus is going to hold strong on their threat to shut down the FY26 process. All of this comes as OMB Director Russ Vought said yesterday that appropriations should become less bipartisan, a sentiment that is strongly opposed in the Senate. If I were Senator Schumer, I’d allow my vulnerable members who need to vote against appropriations bills to vote against MilCon-VA next week, but I would make sure there are 7 votes to get it through the chamber. It doesn’t make sense for the Democrats to start their fight now; there are two months left until the funding deadline, and still a strong possibility that more rescissions packages are sent to the Hill. 

Second, there is frustration among Republicans in Congress that the government remains funded by a CR representing the previous Administration’s spending priorities and levels. The conundrum that they are faced with is that any attempt to break away from those levels require bipartisan agreement and 60 votes in the Senate. This would require negotiating with Democrats, which would buck the President’s desires for massive, across-the-board spending cuts. 

It seems very likely that any future rescissions package will be much larger than $9 billion, and very likely include FY25 funds from ECA. 

Consequences of a shutdown
Generally, shutdowns are bad for the government, its employees, and its critical day-to-day functions. The current climate on Capitol Hill makes it feel like – right now at least – there might be a real possibility of a shutdown in the fall. That chance only increases if the Administration sends the Hill more and larger rescissions requests, and it only increases further the later in the calendar those requests are made.  

Rescissions packages have a 45-day clock for passage once they go to the Hill, and if they don’t clear both chambers, the Administration is required to spend the funds as appropriated. The tactic OMB could take is sending huge rescissions packages to the Hill in mid-August – while Members of Congress are on recess – with a deadline pushing up against the end of the Fiscal Year (and expiration date of those funds). This would be a “pocket rescission,” and certainly add fuel to the fire of the Democrats’ threat to shut down FY26 talks. 

In this climate, however, a shutdown would be even more risky than in a typical year, a factor Democrats are surely considering. This Administration’s goal is to gut the federal workforce and agency programs, and a shutdown could give them carte blanche to do exactly that. In a government shutdown, the executive has broad authority to declare what is deemed “essential” and “non-essential” in government. A shutdown could provide this Administration with the opening it needs to run the parts of the government it wants to run without consideration for Congress or the courts. 

So what will happen?
With midterm elections approaching, it would be in Congress’ interest to work together on government funding for FY26 and reach an agreement between the chambers and bridge the cavernous differences between the parties.  

Longer term, the politics of a shutdown are bad, and the potential reality of a shutdown could be much worse. Many see the politics of ongoing government funding via CR as bad, but it would be less bad for ECA and its programs than a shutdown. While extremely unlikely, at least immediately at the start of the fiscal year, an omnibus or set of minibuses outlining new FY26 spending would send a strong message from the Hill to the Administration about Congress’ power of the purse, especially if whatever they agree upon looks like the House mark for ECA. Even with the Big Beautiful Bill and the first rescissions package behind us, there is still a lot that needs to happen before we can make better predictions about how the government will get funded in FY26. 

House National Security, Department of State, and Related Programs Subcommittee bill funds ECA at $700.95 million

The House National Security, Department of State, and Related Programs (formerly SFOPS) Subcommittee released its FY26 appropriations bill, and the proposed topline funding amount for the Bureau of Educational and Cultural Affairs (ECA) is $700,946,000. 

This amount is significantly higher than the 93% cut proposed in the President’s Budget Request and far more than what was anticipated from the House. This shows that in a political climate focused on sweeping cuts, support for ECA’s international exchange programs remains strong in Congress. 

The bill proposes a 22% cut to the Department of State budget as a whole, so it’s still damaging to U.S. diplomacy, and there are Members of Congress who will understandably be dissatisfied with it. You can read the bill, the respective statements and supplementary documents here: 

• A summary of the bill is available here. 

• Bill text is available here (ECA section on page 4). 

• HAC majority press release is attached here. 

• Democrats posted fact sheet here.  

• HAC Democrats press release is attached here. 

For ECA, though, here’s what this means: the conversation about FY26 is completely new. The President’s Budget Request can be thrown out the window. There is still much more to learn about this bill, including toplines for each program. The subcommittee markup for this bill is tomorrow, Tuesday, July 15 at 11:00am.  

McCarry Leadership Award – 2025 Call for Nominations

We are excited to announce this year’s launch of the McCarry Leadership Award – an initiative promoting the professional development of emerging leaders in the U.S. exchange community. The award honors former Alliance Executive Director Michael McCarry and serves as an opportunity for our community to champion emerging exchange leaders who will be crucial to the advancement and success of international exchange programs.

If you’re an early career professional who works at an Alliance member organization and is looking for opportunities to gain leadership experience, or supervise an early career professional who exhibits leadership potential and a commitment to the exchanges field, we encourage you to review the award information and submit a nomination package by Monday, August 11.

Awardees receive the following:

• Complimentary admission to the Alliance Annual Conference.

• Up to $1,000 reimbursement will also be provided for actual travel expenses associated with the Conference.

• Complimentary admission to Advocacy Day the following year.

Candidates should meet the following criteria:

• Have at least three years of experience in the international education and exchange field. This can include experience as an exchange participant and volunteer work in the field.

• Demonstrate significant leadership potential

• Be employed by an Alliance member organization

• Be 35 or younger

Links to the nominator and candidate application are available here.

Celebrating an American Superpower: Exchange Day 2025

On Monday, August 4, 2025, join the Alliance and the broader international education and cultural exchange community in celebrating Exchange Day! International exchange programs are an American superpower: they drive our economy, create future leaders, advance American interests, and tell America’s story. Every day is a celebration of exchanges but on the first Monday of every August, we intentionally take the time to celebrate and raise awareness about exchange programs and to spread the word about the many ways in which people and communities benefit from people-to-people diplomacy.   

Visit https://alliance-exchange.org/events/celebrate-exchange-day/ to learn more about how you can celebrate Exchange Day. And if you already have an Exchange Day celebration in the works that you would like to share and see amplified, please share it here! 

Unnecessary visa interview pause threatens U.S. prosperity and security

The Trump administration’s decision to temporarily pause scheduling F, M, and J visa appointments jeopardizes the success of international exchange programs essential to the U.S.’ economic prosperity and national security.  On Tuesday, May 27, Politico reported that a cable sent to all embassies and consular posts by Secretary of State Marco Rubio called for consular sections to "not add any additional student or exchange visitor (F, M and J) visa appointment capacity until further guidance is issued.” This request stems from the Department’s plan to “evaluate operations and processes in preparation for expanded social media vetting of all student and exchange visitor visa applicants.”  The cable also states that “appointments already scheduled can proceed under current guidelines,” though the Alliance received reports that a small number of previously scheduled interviews were canceled after the cable was sent. It is important to note the scope of this pause: this impacts international youth, students, and professionals participating in BridgeUSA exchange programs, international leaders participating in professional exchanges, international students and scholars planning to contribute to U.S. universities and colleges, and so many more.  This pause negatively impacts the American businesses, families, schools, and communities that benefit from engaging with international exchange participants, leaders, and international students and scholars in their everyday life.  

Without... 

• ... international students, the U.S. would forfeit the $43.8 billion they contribute to the U.S. economy and the nearly 400,000 American jobs they support per year. 

• ... the International Visitor Leadership Program (IVLP), which provides short-term professional exchanges for international leaders, the U.S. would miss out on the $81.7 million the IVLP community puts back into American communities. 

• ... Summer Work Travel BridgeUSA participants working with local seasonal businesses across the country, the U.S. would lose the $353 million participants spend in the U.S. every year. 

• ... Intern and Trainee BridgeUSA participants working with American companies, the U.S. would lose the $264.2 million participants spend in the U.S. every year. 

• ... BridgeUSA Au Pairs supporting American families, the U.S. would lose the $143.8 million Au Pairs spend in the U.S. every year, and many American families will see their childcare costs increase significantly. 

• ... Camp Counselor BridgeUSA participants creating life-changing summer experiences for American youth, the U.S. would lose the $50.1 million Camp Counselors spend in the U.S. every year. 

And this just scratches the surface of all the ways international exchange participants and students make America more prosperous and enhance communities across the U.S. 

The Alliance strongly encourages the Department of State to immediately resume all nonimmigrant visa appointments for international exchange and education programs. 

Home Is Where the Impact Is: The Importance of Local Advocacy

Global connections, local impact. If international exchange programs had a slogan, I’d say this phrase would be high on the list of contenders. 

Of course, international exchange programs are global in nature: it’s right there in the first word. But what’s often overlooked about exchanges is that local part, and just how important they are to American and American communities' safety, security, and prosperity. 90% of the Department of State exchange program budget is spent on Americans or in America, and every year, all 50 states host international students, scholars, and professionals, 15,000 Americans participate in Department of State exchanges, and 280,000 Americans study abroad. 

With such a strong American constituency, it is vital that our advocacy as exchange champions occurs not just online or in DC but across the country. This summer, the Alliance will be facilitating its second annual Summer of Action, a local advocacy campaign from Memorial Day through Labor Day to increase awareness and understanding of the benefits of international exchange programs on Americans and their local communities. Last year, Alliance members and partners engaged with 51 Congressional offices in 26 states, and we’re only looking to grow and deepen that engagement as we enter this summer. 

Local advocacy matters deeply to our collective work. It’s an opportunity to foster new relationships with Congressional offices and staff, inform them about the importance of exchanges to their communities and constituencies, and reinforce the messaging and requests we’re circulating on the Hill in Washington, DC. 

This summer, we all can take action and make our voices heard on behalf of exchange programs. Below are a few ways to get started: 

• Write to Your Members of Congress: Tell Congress to reject President’s FY26 budget proposal threatening to eliminate ECA (read more about the proposed budget here) and support funding for international exchange programs through our advocacy campaign. 

• Visit Your Member of Congress’ state or district office: Reinforce our ask in person by meeting with Congressional staff based in your home state and district. Here you can find tips and tricks to get a meeting in the books. 

Action Alert: Tell Congress to reject President’s budget proposal and support funding for international exchange programs

The Alliance for International Exchange, on behalf of its more than 90 U.S.-based members who implement international exchange programs is launching a campaign to urge Members of Congress to reject the President’s FY26 budget proposal and support funding for international exchange programs. 

On Friday, May 2, the Trump Administration released its FY26 “skinny” budget, which is a high-level overview of the president’s priorities for the upcoming fiscal year's budget process. The budget proposes to cut State Department international exchange programs by 93%. If Congress enacts this budget proposal, it would essentially eliminate the Bureau of Educational and Cultural Affairs (ECA) and leave exchange programs, the U.S. organizations that implement them, and the jobs of more than 8,000 exchange professionals around the country at risk. 

Exchange programs are a proven investment in America – an investment in the economy, in American communities, and in the U.S.’ foreign policy influence and interests. They are vital to making America safer, stronger, and more prosperous and should continue to be funded as such. 

We encourage all exchange champions to take action today and urge Congress to support thousands of Americans and communities by ensuring funding for international exchange programs.   

President’s FY26 budget proposes to essentially eliminate State Department exchange programs

We expected it, but it’s still deeply disappointing to see. The President’s FY26 budget proposal would essentially eliminate State Department international exchange programs.

Released earlier today, this FY26 “skinny” budget proposes to cut State Department international exchange programs by $691 million, or by 93%. This would decimate and essentially eliminate the Bureau of Educational and Cultural Affairs (ECA). Given the current budget is $741 million, this would leave only $50 million for all ECA programs and operations.

The proposal demonstrates a fundamental misunderstanding of exchange programs and would do the exact opposite of making America safer, stronger, and more prosperous.

International exchange programs are a proven investment in America – an investment in our economy, in our people, and in our foreign policy influence and interests. In order to expand America's global influence, it’s important to invest more in international exchanges, not less.

We should pause for a minute at this stage and remember that this President’s budget request (PBR) is a proposal – a “wish list” so to speak – and is not binding. Congress can take it, take portions of it, or take none of it. More often than not, Congress goes against the PBR during their appropriations process. The previous Trump Administration proposed to cut ECA for four consecutive years, anywhere from 55-75%. These proposals were all rejected by Congress. Check out my colleague Adrienne’s Jacobs’ excellent blog post on this topic for more.

But even so, we should be and are very concerned about this proposal, and we will push back. We’ll be working, as we always do, to make clear that exchange programs are a direct investment in our economy, our communities, and our people. Exchange programs may be international in nature, but they’re distinctly American in impact.

The budget request’s rationale for this proposed cut – that exchanges are inefficient and can’t be afforded, that opportunities are being taken away from Americans, and that there is “fraud” in their implementation – couldn’t be further from the truth.

Exchange programs are one of the best returns on investment in the federal governmentAccording to the State Department’s own talking points, 90%, or ~$660 million, of the Department of State exchange program budget is spent on Americans traveling abroad or by international participants while in America. This is one of the best returns on investment across the entire federal government.

Additionally, the exchanges appropriation leverages millions of additional dollars in private and international government contributions. For example:

• The Global Ties U.S. network of 90+ community-based nonprofits in all 50 states that implement the International Visitor Leadership Program (IVLP) sees an 11:1 return on federal investment – for every federal dollar spent on their programs conducted in the United States, these organizations generate $11 more.  

• The Fulbright Program is one of the most highly leveraged federal programs, as over 100 partner governments currently contribute over $100 million annually, with 30 foreign governments matching or exceeding the U.S. government’s annual contribution.

Exchange programs create opportunities for Americans and American communities.International exchanges equip American leaders for success on the world stage and strengthen American communities across the country.  

• 15,000 American participants travel abroad on State Department exchanges every year, gaining critical skills and experiences that set them up for success in the global marketplace. 

• Nearly 60% of the young Americans that receive a Benjamin A. Gilman International Scholarship to study abroad are from small towns or rural communities in the U.S. 

• 97% of U.S. Scholars who participated in the Fulbright Program found the experience professionally transformative. 

• The National Security and Language Initiative for Youth (NSLI-Y) and the Critical Language Scholarship (CLS) provide young Americans the opportunity to study languages critical to U.S. interest directly in the regions where these languages are spoken. 

• Four out of five Americans who participate in the International Visitor Leadership Program (IVLP) feel international exchange programs enhance the image of their community as a good place to live.  

• 31 million job openings require skills in communication, leadership, and problem-solving – all skills gained through exchange programs. 

• All 50 states host and benefit from exchange participants contributions to American businesses, communities, schools, and more.

Exchange programs are some of the most monitored and evaluated programs in the government.U.S. organizations that implement State Department exchange programs are strong and scrupulous partners who exhibit consistent quality and accountability.  

• Implementing partners of the Department of State must submit line-item budgets for every award, including notes that justify each expense. These budgets are critiqued by ECA’s grants officers who often follow up with questions to ensure the allowability of expenses and cost reasonableness. Funds cannot be distributed until grants officers sign off. 

• Financial reports are submitted by implementing partners to ECA on a regular basis (monthly or quarterly depending on the terms of their contract with the Department of State). This is done so ECA can monitor program spending in real time. 

• Every implementing partner who receives funds from ECA must be audited by an external firm annually to ensure there is no waste, fraud, or abuse. Each audit report is shared with the Department of State. 

• The last Inspector General report on ECA was done in 2021 and, contrary to the budget proposal’s allegation, no fraud of any kind was reported.  

Lessons Learned: The First 100 Days of the Second Trump Administration

International exchange programs make America “safer, stronger, and more prosperous.” This has been an Alliance refrain since Secretary of State Marco Rubio first coined the phrase during his Senate confirmation hearing on January 15. It has fueled our advocacy over the past 100 days as we’ve worked to thaw a funding freeze, navigated Executive Orders and leaked memos impacting exchanges, prepared for expected proposed cuts to ECA funding, and so much more. 

Below are four lessons from the past 100 days that we at the Alliance are reflecting on to inform our advocacy efforts going forward. 

• Lesson 1: Patience, Patience, Patience. With so many threats facing exchanges during the first 100 days, we’ve prioritized gathering the information and support we need to ensure we’re most effective when we act. A perfect example of this was our advocacy efforts on the ECA funding freeze. You can read more about this effort here. 

• Lesson 2: [Information] Sharing is Caring. Information, the receiving and sharing of it, has been fundamental to our advocacy work over the past 100 days. The more people are aware of the threats facing international exchange programs, the more they can make their voices heard and make positive change. Over 25,000 letters were sent to Congress through our ECA funding freeze campaign, ultimately leading to the flow of funding to exchange implementing partners. 

• Lesson 3: The Power of Coalitions. Our ability to partner with fellow coalitions throughout these 100 days has amplified our impact on the issues we engage in daily. We are especially grateful to our colleagues at The Forum on Education Abroad, NAFSA, and the U.S. for Success Coalition for their collaboration in advocating against the ECA funding freeze and on behalf of international students and scholars. 

• Lesson 4: The Process Still Exists. Despite so much uncertainty, the Alliance is continuing to engage in the appropriations process to ensure strong support for international exchange programs within Congress. We’ve submitted 132 exchange funding appropriations requests and are meeting key House and Senate leadership to make the case for exchanges. 

We are deeply grateful for all those who have collaborated with us over the past 100 days to promote and protect international exchange programs. Special thanks go to our members, supporters, fellow associations, and all those exchange champions that made their voices heard on behalf of exchanges.  

Policy Update: ECA Remains Intact Amidst Major State Department Reorganization

This morning, Secretary of State Rubio shared his vision for a reorganization of the Department of State, including a new org chart, attached here. The two most important takeaways for international exchanges are: 

• ECA and PD remain intact 

• This reorganization is not a Reduction in Force (RIF)  

In a Substack post, the Secretary includes more details for the rationale behind the reorganization.

In a follow-up email to staff, Deputy Secretary of State (D) Chris Landau outlined an ongoing reorganization process led by an internal working group led by the yet-to-be-confirmed Deputy Secretary for Management and Resources. Until then, the group will be led by Acting Under Secretary Jose Cunningham. The email details the intent to carry out the reorganization process bureau by bureau by July 1. Some other key points from D’s email are: 

• The process will be a “streamlining” of the Department’s reporting lines and workforce, but ongoing programming will not be impacted for the time being. 

• Programming will proceed “consistent with relevant authorities, which indicates they are aware of the statutory authority of many Department activities, including ECA. 

• Today’s reorganization focuses solely on domestic offices, not overseas embassies, posts, or operations. Under Secretaries are being asked to submit proposals for 15% domestic staffing cuts. 

While this is good news for ECA today, the fact remains that we expect the President’s budget to include significant cuts to the ECE line. How does this reorganization plan that seemingly leaves ECA untouched for the moment square with the fact that the Department of State is recommending drastic cuts to ECE to go in the President’s budget request? 

It's important to continue to keep an eye on this ball. Today, minimal damage was inflicted on ECA, but there are still forces at play that would see the Bureau abolished.  

USCIS Alien Registration Explained: What it Means for Exchange Students

Since the beginning of the second Trump administration, there has been growing confusion within the exchange community surrounding recent developments related to the Alien Registration Requirement and their potential implications for exchange participants. While these requirements do not apply to the majority of international students or exchange visitors, and no additional registration is necessary for individuals in these categories, it remains important to understand what they entail. Below is more information on what the Alien Registration Requirement is and to whom it applies. 

Background

On Inauguration Day, one of President Trump's first Executive Orders (EOs) instructed the Department of Homeland Security to enforce Section 262 of the Immigration and Nationality Act (INA), also known as The Alien Registration Act of 1940. This longstanding provision requires all foreign nationals aged 14 and older who reside in the U.S. for more than 30 days to register and be fingerprinted—unless they have already completed this step during their visa application process. 

Following this EO, U.S. Citizenship and Immigration Services (USCIS) published a page on their website outlining the details of the Alien Registration Requirement, sharing which individuals must register or re-register with the Federal government and how they can do so. USCIS also published an Interim Final Rule effective April 11, 2025 that requires nonimmigrants who turn 14 while in the U.S. to re-register within 30 days of their birthday, even if they were previously registered and issued an I-94 Form when entering the country. 

Impact

These updates have sparked questions about what this means for international students and exchange visitors. The good news? Most won’t be affected—but here’s what you need to know about the Alien Registration Requirement and the new USCIS rule: 

Are there any new changes to the Alien Registration Requirement?

Yes, there are two key updates to the Alien Registration Requirement:  

• The new requirement for young foreign nationals to re-register once they turn 14 (codified in the Interim Final Rule); and, 

• Individuals who have not been registered in the past must now also register with the Federal government, including visa-exempt Canadian nationals who enter at land borders without an I-94 and stay 30+ days and foreign nationals who entered without inspection (EWI) and are in the U.S. 30+ days (i.e. those who crossed the border illegally) 

Do international students and exchange visitors need to register under this policy?

No, most nonimmigrants (including F-1s and J-1s) are already registered when they enter the United States. When an individual receives a visa, is inspected at a U.S. port of entry, and receives an I-94 Form, this automatically counts as their registration and will not require them to re-register under this DHS program. Generally, re-registration will not be required if the participant entered the U.S. at age 14 or older and they received an I-91 Form on entry. See “Who is already registered” section on the USCIS Alien Registration Requirement web page. 

Will the USCIS Interim Final Rule impact international students and exchange visitors?

This may affect J-2 dependents and any young F-1 and J-1 students who entered the U.S. prior to age 14 (e.g. boarding school students), but in most cases, no.  

The Department of State Memo That Leaked: Let’s Talk About the Budget Process

This week in Washington began abuzz, first with rumors and speculation about a damaging memo possibly coming from the Department of State, and then real alarm when The Washington Post published a piece about a memo that was leaked to them proposing to slash the agency’s funding by nearly half, including the elimination of the Bureau of Educational and Cultural Affairs (ECA). The coverage of this memo has been breathless and dire. We at the Alliance saw the full memo, and it is very concerning. 

What the press only mentions as a footnote, though, is this: the leaked memo is a step in the beginning of the very long process that exists to write, authorize, and appropriate the federal funding legislation. The memo in and of itself has no immediate or tangible impact on the Department of State, ECA, or Alliance members’ programs. Below is an overview of the long, arcane, and complex process that explains why this memo is nothing more than a memo right now.

“Regular Order”, a.k.a. the way things should be done and aren’t

The Congressional budget process was established under the Congressional Budget and Impoundment Control Act of 1974, and that process takes place after the President’s Budget Request (PBR) is submitted to Congress. Below is a chart that outlines what the “regular order” of the federal budget process should look like each year. 

On or before: Action to be completed:

October-December Federal agencies create budget requests and submit them to the White House Office of Management and Budget (OMB) OMB refers to the agencies’ requests as it develops the budget proposal for the president.

First Monday in February The president submits the budget request (PBR) to Congress.

February 15 Congressional Budget Office (CBO) submits report to House and Senate Budget Committees.

Within 6 weeks after the PBR is submitted Authorizing committees submit views and estimates to Budget Committees for each federal agency. House and Senate Budget Committees hold hearings on the PBR.

April 1 Senate Budget Committee reports concurrent resolution on the budget, which outlines targets for congressional committees to propose legislation directly appropriating funds or changing spending and tax laws. The budget resolution is not law and does not get signed by the President.

April 15 Congress completes action on the budget resolution, meaning the House and Senate agree on exact text language.

May – June House and Senate complete action on 12 appropriations bills guided by the targets outlined in the budget resolution. These bills do become law by going to the president for signature. Appropriations bills are the vehicle through which federal agencies receive funding.

October 1 Fiscal Year begins

Source: House Budget Committee: https://budget.house.gov/about/budget-framework/time-table-budget-process/; Center on Budget and Policy Priorities: https://www.cbpp.org/research/federal-budget/introduction-to-the-federal-budget-process  

Since the Congressional Budget Act of 1974 was passed, Congress was able to complete this process for the first 23 years, however since 1999, they have failed to complete it the majority of the time. As Congress become more polarized, agreement on any legislation, but especially appropriations, has become more difficult. In 42 of the last 45 years, Congress has failed to agree on and pass appropriations bills by the start of the fiscal years. [1] In these instances, Congress is forced to pass short-term stopgap funding in the form of a Continuing Resolution (CR), or they put all 12 appropriations bills into one giant omnibus legislation to fund the full government or risk a government shutdown (which has happened several times). As might be clear at this point: neither of these processes for funding the government that have become the norm are considered “regular order” per the Congressional Budget Act. 

What does the President’s Budget Request really mean?

What does all of this have to do with the leaked memo? The memo represents what seems like a draft for the first step in the above chart where federal agencies create budget requests to submit to OMB. However, there is a lot of uncertainty surrounding this memo, including whether it is in fact the Department of State’s actual budget request for FY26. Subsequent reporting has noted that the memo is not expected to “pass muster with either the department’s leadership or Congress”. [2]

The president’s budget request in any given year is simply an overview of an Administration’s priorities and values. Congress can take it, take portions of it, or take none of it as they work through their own process to appropriate and authorize the federal agencies and programs. More often than not, Congress goes against the PBR during their appropriations process. It’s important to remember that the previous Trump Administration’s proposed budgets for ECA were cuts of anywhere from 55-75%. These were all rejected by Congress and funding for exchanges ended up growing by 17% over those four years. While a funding increase for ECA is not expected, it’s important to take heart that Congress has the final say on funding the federal government. 

Because the appropriations process is so broken (often ending in an omnibus or Continuing Resolution), and the legislative filibuster still exists, bipartisan agreement, at least in the Senate, is required to pass any kind of legislation to fund the government. Additionally, the House ultimately has to agree with whatever the Senate passes for it to go to the president to become law. 

All of that is to say, bipartisan support continues to exist for the Department of State, for ECA, and for international exchange programs writ large. Terminating ECA and eliminating all exchange programs is very unlikely to get the bipartisan support required to become law.

 ______________________________________________________

[1] Center for Budget Policy and Priorities, https://www.cbpp.org/research/federal-budget/introduction-to-the-federal-budget-process

[2] PBS news, https://www.pbs.org/newshour/politics/watch-live-state-department-briefing-may-address-proposed-budget-cuts-el-salvador-deportations

Exchanges Aren’t Going Anywhere: Leaked State Department Memo and What It Means for Exchanges

On Monday, April 14, The Washington Post broke the news that a leaked internal Administration memo proposed cutting the State Department by 48% and eliminating the Bureau of Educational and Cultural Affairs (ECA) and its exchange programs. 

While the memo is concerning and must be taken seriously, context is key: the memo is a proposal of a potential proposal and doesn’t mean the imminent elimination of ECA and exchange programs. 

This memo is a part of an annual process for creating the President’s Budget Request, or PBR. The memo is the State Department’s response to the Office of Management and Budget’s (OMB) request for input on funding levels as it creates the PBR for FY26. And ultimately, it’s Congress that determines final funding numbers. If you’re interested in learning more about this process, I highly encourage you to read Alliance Assistant Director and Head of Advocacy and Government Relations Adrienne Jacobs' excellent analysis here.  

Exchange programs aren’t going anywhere, not if we have anything to say about it. We at the Alliance, along with our members, supporters, and partners, are working tirelessly to promote and protect international exchange programs. For those interested in staying up to date on the latest policy news and advocacy opportunities, visit our 47th Presidential Administration webpage. 

Action Alert: Tell Congress International Students are Essential to America’s Safety, Economy, and Global Strength

The U.S. for Success Coalition, of which the Alliance is a founding member, is calling on Congress to press the administration to avoid immigration actions and travel restrictions that jeopardize America’s global strength in attracting the world’s best and brightest to U.S. colleges and universities. Advocates can take up this call to action by reaching out to their members of Congress with the message that the administration should make it a national priority to welcome international students and scholars to study and succeed in the U.S.

Advocacy Update: Exchange Funding Begins to Flow After Pause

As of Friday, March 28, Alliance members have received over 85% of outstanding State Department payments that had been withheld due to the ongoing funding freeze. This is a major victory in an advocacy effort that began when on Thursday, February 13 when the State Department informed grantees that a temporary 15-day pause on federal funding for all current and future State Department FY25 grant disbursements had gone into effect as of Wednesday, February 12.

In response, the Alliance, along with NAFSA and The Forum on Education Abroad, launched an advocacy campaign urging Congress to restore funding to ECA program implementers. Exchange champions sent 25,000+ letters to more than 500 Congressional offices. 

Just days after the campaign launch, 160 Alliance members went to Capitol Hill to meet with over 140 Congressional offices on Advocacy Day, delivering the same urgent message.

These meetings led to a House sign on letter co-sponsored by Rep. Chellie Pingree (D-ME, 1) and Rep. Madeleine Dean (D-PA, 4) with 47 signatures urging Secretary of State Rubio to immediately stop the freeze.

We also generated strong media attention in major outlets like the New York Times, the Washington Post, and the Associated Press.  

Action Alert: Urge Congress to Restore Vital International Exchange Funding

The Alliance for International Exchange, on behalf of its more than 90 U.S.-based members who implement international exchange programs, and in conjunction with NAFSA and the Forum on Education Abroad, is launching a campaign to urge Members of Congress to demand that the U.S. Department of State lift the freeze on international exchange funding. 

The Department of State still has not lifted what was described as a 15-day temporary pause of all international exchange program funding that went into effect on Wednesday, February 12. This pause has paralyzed an array of time-honored exchange programs that enhance American safety, security, and prosperity.  

This action risks the health, safety, and future of the more than 12,500 American youth, students, and professionals who are currently abroad or who have plans to be abroad in the next six months. It also shuts off funding for U.S. programs now hosting more than 7,400 youth, students, and professionals in American communities from around the world. 

We encourage all exchange champions take action today and urge Congress to support thousands of American students and communities by contacting the U.S. Department of State to demand that funding be turned back on for international exchange programs. 

New Report: BridgeUSA Exchange Programs are an investment in America

The Alliance is pleased to announce the launch of a new report that showcases the significant impact Department of State BridgeUSA programs have in and on the United States. 

Commissioned by the Alliance and conducted by Rajika Bhandari Advisors, this comprehensive report looks specifically at five BridgeUSA Programs: the Au Pair, Camp Counselor, Intern and Trainee, and Summer Work Travel (SWT) programs.  

The report shows and discusses impact data with regards to five key themes, namely that BridgeUSA programs... 

• have a profound economic impact on host organizations and host families, and by extension host communities across the U.S.; 

• forge long-term ties between the U.S. and other countries; 

• benefit international participants without taking away employment opportunities from Americans; 

• have a multiplier effect on American communities; and  

• are meaningful cultural exchange and a unique workforce opportunity. 

Notably, the report finds that exchange participants who came to the U.S. on the five programs surveyed contributed $811.2 million to the U.S. in 2023 alone. And without the support of BridgeUSA participants, many American families would struggle, and American businesses would be unable to operate as intended and/or at full capacity. The report also shows that 98% of program alumni spread the word about the programs and their experience in the U.S. through their networks and 90% of program alumni continue their engagement with the U.S. in a variety of ways after their exchange.  

We encourage exchange champions to share this important report and its supplemental resources with their networks and take to social media to showcase the proven investment of BridgeUSA exchange programs using the hashtags #ExchangesImpact #ExchangesMatter. More information about the report is available here. 

The Alliance is grateful to Rajika Bhandari and Melquin Ramos of Rajika Bhandari Advisors and Stacie Clark for their collaboration and work on this critical resource. 

Alliance welcomes new Board of Directors members for 2025

The Alliance is pleased to announce the newest members of our Board of Directors.

Fanta Aw is the Executive Director & CEO at NAFSA: Association of International Educators, a membership organization committed to international education and exchange, and working to advance policies and practices that build global citizens with the knowledge and skills they need to succeed in today's interconnected world. For Dr. Aw, “being on the Alliance board means a great deal because the mission is very aligned with what I deeply care about and that is the power and impact of people to people exchange. I hope to bring in the voice of the higher education sector and am excited to learn from my colleagues on the Board of Directors.” 

James Bell serves as the CEO of Alliance Strategies, a global organization dedicated to creating impactful cultural exchange experiences. With a focus on fostering meaningful connections and promoting professional growth, the company emphasizes authentic cultural immersion as a foundation for real change. Operating through 10 global offices and 4 core brands—Alliance Abroad, GeoVisions, StepWest, and WildPacks—Alliance Strategies provides transformative work abroad opportunities for participants while helping host employers access top international talent. For James, “joining the Alliance Board is an opportunity to contribute to the vital work of advancing inclusivity, innovation, and global understanding in international exchange. At a time of evolving challenges, I am committed to fostering collaboration among peers and supporting initiatives that create meaningful impact. Drawing on years of leadership in the cultural exchange industry, I look forward to working alongside dedicated leaders to shape the future of international exchange and strengthen connections across cultures and communities.”

Sarah Ilchman is Co-President at the Institute of International Education (IIE), which touches the lives of more than 29,000 people in 180 countries each year through the programs they administer, helping to educate the next generation of leaders and serving as a lifeline to the world’s most imperiled students, scholars, and artists. According to Sarah, "Serving on the Alliance Board is an opportunity to strengthen IIE’s commitment to collaboration and advocacy in the field of international education. It is a chance to actively shape the future of international exchange, connect with dedicated leaders, and support initiatives that drive meaningful impact across the globe."

Mark Rebstock is the Vice President & Deputy Director, IVLP at Meridian International Center, a nonpartisan, nonprofit diplomacy center with the vision that greater understanding and collaboration between the United States and the world leads to a more prosperous future for all. For Mark, “as geopolitical volatility and global conflict rise, international exchange programs that promote global dialogue, collaboration on major issues, and U.S. foreign policy objectives will be more important than ever. To support these important initiatives, a strong Alliance will continue to be called upon to champion, amplify, and advocate for robust support for these programs. I and Meridian are honored to serve on the Alliance board to strengthen and grow our efforts.”

Caroline Spencer is the Director of Government Relations at Participate Learning, whose mission is to unite our world through global learning. Caroline is “excited to serve on the Alliance Board and proud to represent the growing teacher exchange category, which plays a critical role in shaping future leaders. I look forward to collaborating with the Alliance and fellow board members across all exchange categories to protect and promote our industry, ensuring these vital programs continue to thrive.”

We welcome Fanta, James, Sarah, Mark and Caroline to the Board, and thank them for their leadership and service to the Alliance community and the international education and exchange field.

Alliance congratulates Marco Rubio on his confirmation as Secretary of State

The Alliance for International Exchange congratulates Secretary of State Marco Rubio on his confirmation, and on being sworn in, as the 72nd Secretary of State this week. During his remarks to Department of State staff, Secretary Rubio emphasized the need for a pragmatic U.S. foreign policy that makes America safer, stronger, and more prosperous. We are optimistic that this mission for the Department will translate into the Secretary’s strong support of international exchange programs, which meet those important criteria.  

Exchanges make America safer by advancing U.S. interests and values around the world. Exchanges make America stronger by creating future American leaders and telling America’s story to the world. And exchanges make America more prosperous by bringing billions of dollars to the U.S. economy and creating hundreds of thousands of jobs for Americans. 

The Alliance looks forward to working with Secretary Rubio in his new role and to promoting and expanding Department of State international exchange programs. 

Potential Impact of a U.S. Government Shutdown on International Exchange Programs

With only hours left before government funding expires (tonight at midnight), Congress has not reached an FY25 funding deal. None of the 12 appropriations bills have passed, and progress on extending the current Continuing Resolution (CR) has stalled. A bipartisan agreement to extend funding until mid-March collapsed this week, and a House vote to pass a different CR failed on Thursday evening. It’s not impossible that the situation could change throughout the day but given the current dynamics on the Hill and the late hour, a government shutdown as of Saturday at 12:01 am is looking likely.  

A shutdown happens when Congress fails to pass legislation to fund the government, whether in the form of final appropriations bills or a temporary CR. In this case, if neither of these options are enacted before tomorrow, a full government shutdown will occur and would affect all federal activities covered by discretionary funding. A shutdown is temporary, but how long it would continue is uncertain.  

In the event that a shutdown does occur, below is a primer on how international exchange programs might be impacted during that time.  

U.S. government offices will be closed or at limited capacity
Many U.S. government offices will either be closed for operations or functioning at limited capacity, including the Department of State’s Bureaus of Educational and Cultural Affairs (ECA) and Consular Affairs (CA). See the Department’s Guidance on Operations During a Lapse in Appropriations published in early 2022 for more details.  

Once a shutdown is in effect, we expect that the Department of State would release specific guidance outlining how consular services are impacted. Exchange program applicants awaiting visa approvals or interviews should expect that there will be processing delays during this time. During the last shutdown, DOS advised that “scheduled” passport and visa services would continue as “the situation permits.”  

Federal funding for exchanges won’t be immediately impacted
DOS funded programs already in progress won’t face instantaneous issues when the shutdown happens, as the funds have already been allocated. According to the DOS guidance linked above, ECA would be able to “continue operating using available balances” (pg. 23 and pg. 69) until those funds are expended. However, if the shutdown is prolonged, new projects would likely be stalled. ECA cannot start any new programs or activities during a shutdown. 

Additionally, if a large part of ECA’s staff is furloughed, this could hinder certain programmatic decisions from moving forward in the short term and create a backlog in the long term.  

Participants will feel the impact in different ways 

• Exchange participants currently in the U.S.:  

• Their visa and status in the U.S. will be unaffected.  

• U.S. citizens currently outside the U.S.:  

• Americans who are abroad on an exchange program should be advised that, during a shutdown, U.S. embassies may only be open to provide services to Americans in distress.  

• Exchange participants with approved visas, awaiting travel dates:  

• The Department of Homeland Security will likely continue operations, so these individuals can plan to arrive in the U.S. according to their current schedules – but participants are advised to check in with their exchange organization and/or airline before traveling. 

• SEVIS (Student & Exchange Visitor Information System) will also likely continue operations, so arriving participants can register as instructed.  

• The Social Security Administration will likely suspend processing original or replacement cards, so arriving exchange participants will likely need to wait until the government reopens to apply for a Social Security number.  

• Exchange program applicants awaiting visa approval or interviews:   

• Applicants awaiting visa approval should anticipate delays in visa processing.  

• Applicants awaiting a visa interview or scheduling a visa interview should anticipate that there may be delays in the process.  

• It’s advisable to check https://www.usembassy.gov/ for updates about the status of the shutdown and to contact the local U.S. embassy or consular office for more details, especially once the shutdown is over.