POLITICAL HQ
eliminationcritical impact Budget PDF p. 54

National Endowment for Democracy

(NED)

Department of State & International Programs
Proposed Cut
$315M
% Reduction
100.0%
Action Type
elimination
Who Is Served

Democracy and human rights programs in 90+ countries; 1,900+ grants annually

Summary

The National Endowment for Democracy (NED) is a federally funded nonprofit, created in 1983 with bipartisan support, that gives grants to groups working on democracy, human rights, and civil society in more than 90 countries. The FY2027 budget proposes eliminating all $315 million in federal funding for NED, a 100% cut, ending the roughly 1,900 grants it makes each year because the administration says it has funded opposition-aligned political movements.

Who Is Affected

NED's core grantee institutes, including the National Democratic Institute and the International Republican Institute, and the thousands of local civil society groups, journalists, election monitors, and labor and human rights organizers they fund in more than 90 countries would lose support. A related 2025 funding freeze already led the International Republican Institute to close all 64 of its overseas offices and lay off up to 85% of its staff, while the National Democratic Institute terminated 93 of its 97 active awards and cut about 1,000 jobs, according to congressional testimony.

What this cut would actually mean

Full elimination would permanently shut down the U.S. government's main channel for supporting independent media, election observation, anti-corruption watchdogs, and civil society groups in fragile and authoritarian countries, leaving many of those local partners without any comparable funding source. Based on what happened during the 2025 freeze, that likely means more grantee offices closing, more layoffs among local staff and activists, and canceled election-monitoring and rights-defense work in countries where NED has been one of the only sources of outside support. Analysts and NED's own leadership warn the loss of this funding also reduces a long-standing tool of U.S. soft power abroad.

Sources

Administration's Stated Rationale

NED viewed as funding opposition movements; democracy promotion programs terminated.