Tillerson Looks To Wring $10 Billion In Savings From State Department Restructuring


Secretary of State Rex Tillerson says his redesign of the Department of State will generate billions of dollars in cost savings, primarily through a realignment of U.S. foreign aid programs.

In an email sent Wednesday to State Department employees, Tillerson outlined the Department restructuring plan he intends to submit to the White House Office of Management and Budget this week.

The email, a copy of which was obtained by Politico, describes a variety of changes to State’s bureaucracy and internal programs, including updates of department IT systems, more flexible programs for families, and folding special envoys into permanent bureaus. But the most significant proposal calls for eliminating overlapping policies and programs at State and the U.S. Agency for International Development (USAID).

Though Tillerson stopped short of proposing a merger between State and USAID, he did suggest that doing away with redundancies between the two agencies would make them more cost-effective. Improved coordination between State and USAID can save up to $10 billion over five years, he said. – READ MORE

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