Get the latest market trends in your inbox

Stay on top of the latest market trends and economic insights with the Axios Markets newsletter. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Denver news in your inbox

Catch up on the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Des Moines news in your inbox

Catch up on the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Minneapolis-St. Paul news in your inbox

Catch up on the most important stories affecting your hometown with Axios Minneapolis-St. Paul

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tampa-St. Petersburg news in your inbox

Catch up on the most important stories affecting your hometown with Axios Tampa-St. Petersburg

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Bags of sorghum from USAID being unloaded at a port in Sudan. Photo: Ashraf Shazly/AFP/Getty Images

The Office of Management and Budget (OMB) is reportedly preparing to submit this week a rescission package that could cut billions in foreign development funding — a move that would have a long-term impact on both the federal budget process and vulnerable populations around the world.

Why it matters: OMB’s plan could target global programs that reduce food insecurity, improve public health, expand energy access and combat corruption. And it would upend decades of bipartisan consensus that development funds are a valuable tool to advance America’s values and foreign policy, national security and economic interests.

Details: OMB officials have expressed a desire to cut more than $4 billion from a number of State Department and USAID accounts.

  • The proposal could strike millions for UN peacekeeping activities in places like South Sudan and the Democratic Republic of the Congo, where the Ebola outbreak is now a public health emergency.
  • Aid to Europe and Eurasia could be part of OMB’s rescissions, taking away a valuable diplomatic tool.
  • The cuts could also include programs that combat international narcotics trafficking.

Between the lines: Although the rescission package has been presented as a deficit reduction, a roughly $4 billion cut would amount to less than 0.1% of the federal budget, making its contribution minimal even as it risks driving up long-term costs.

The impact: The proposed budget maneuver also raises balance-of-power concerns in bypassing Congress to cut funding it has already authorized. It would effectively let the executive branch undermine legislative power of the purse.

What to watch: As early as this week, President Trump could send Congress details of the administration’s requested rescissions, which a bipartisan group of lawmakers have vocally opposed.

  • The plan will likely move ahead unless key players in the administration manage to derail it, as Secretary of State Mike Pompeo did to halt a similar effort last year. Pompeo and Treasury Secretary Steve Mnuchin have reportedly been in talks to scale back the cuts.

Gayle E. Smith is the president and CEO of the ONE Campaign and a former administrator of USAID.

Go deeper

Bipartisan group of senators unveil $908 billion COVID stimulus proposal

Sens. Joe Manchin (D-W.Va.) and Susan Collins (R-Maine) in the Capitol in 2018. Photo: Tom Williams/CQ Roll Call

A bipartisan group of senators on Tuesday proposed a $908 billion coronavirus stimulus package, in one of the few concrete steps toward COVID relief made by Congress in several months.

Why it matters: Recent data shows that the economic recovery is floundering as coronavirus cases surge and hospitals threaten to be overwhelmed heading into what is likely to be a grim winter.

Inside Patch's new local newsletter platform

Illustration: Annelise Capossela/Axios

Patch, the hyperlocal (and profitable) local digital news company, has built a new software platform called "Patch Labs" that lets local news reporters publish their own newsletters and websites, sources tell Axios.

Why it matters: It follows a growing trend of journalists going solo via newsletters at the national level.

Scoop: Politico stars plot new Playbook

Anna Palmer and Jake Sherman. Photo: Alex Wong/Getty Images

Three of Politico’s biggest reporting stars plan to launch a competitor to the company’s Politico Playbook franchise, sources tell me. 

Why it matters:  Jake Sherman, Anna Palmer and John Bresnahan will launch a daily newsletter in 2021 as a stand-alone company, the sources say. In effect, they will be competing against the Playbook franchise they helped create and grow.