Sponsor
Timothy Burchett
Representative · R-TN
Representative · R-TN
The bill reduces immediate federal spending and simplifies statutory authority by closing the Foundation and transferring oversight to State, but does so at the cost of disrupting existing grants and services to African partners, weakening a U.S. development/diplomatic tool, creating legal and transition uncertainty, and producing job losses and administrative burdens.
Taxpayers: Unspent Foundation funds are returned to the Treasury, reducing federal outlays.
State Department and federal overseers: Transferring records and responsibilities to State ensures multi‑year grants are monitored until they expire, reducing unmanaged program risk.
Taxpayers and future budgets: The bill prohibits new Foundation grants, loans, or guarantees, limiting potential future federal spending obligations.
Nonprofits and partner communities in Africa: Grants and services may be disrupted or ended, causing loss of funding and delays in programs that those organizations and communities rely on.
U.S. taxpayers and national security interests: Eliminating the Foundation reduces a U.S. development tool that built economic ties and stability abroad, potentially weakening long‑term diplomatic and security benefits.
Ongoing projects and beneficiaries: Liquidation and transfer processes may cause administrative disruption (delayed payments, interrupted services, slowed implementation) while responsibilities move between entities.
Based on analysis of 5 sections of legislative text.
Abolishes the U.S. African Development Foundation after 120 days, halts new grants, transfers assets to State for liquidation, and deposits unspent funds to the Treasury.
Introduced February 20, 2026 by Timothy Burchett · Last progress February 20, 2026
Abolishes the United States African Development Foundation 120 days after the law is enacted, stops the Foundation from starting any new grants or loans, and requires remaining assets and unspent funds to be handled by other federal agencies. Unexpended balances are to be deposited into the Treasury general fund, remaining assets and records are transferred to the Department of State (as directed by the OMB Director) for liquidation or oversight of existing multi-year grants, and the law that created the Foundation is repealed. Foundation employees must receive reduction-in-force notices consistent with federal law.