State Department documents seek $175.8 million for cable swaps and $340 million-plus for other projects.
Why it matters: The proposal could direct more U.S. aid and infrastructure spending toward regions where China is competing for influence. Contractors, telecom firms and emerging-market operators may see new funding opportunities - and more geopolitical scrutiny.
- AP reported July 28, 2026, that the Trump administration is preparing a wider spending push to counter China overseas.
- An internal State Department document seeks $175.8 million to replace undersea telecom cables in the Caribbean and Central America.
- The broader request includes more than $340 million for over 50 projects in the Western Hemisphere, Africa and Asia.
- The spending notice was sent to Congress late last week, according to AP.
Washington is weighing a larger overseas spending package aimed at countering Chinese influence, according to documents obtained by AP. The internal State Department proposal says the U.S. needs to respond to what it calls the Chinese Communist Party's growing economic, technological and diplomatic leverage around the world.
The largest identified item is $175.8 million to replace undersea telecommunications cables in the Caribbean and Central America. AP said the work would support El Salvador, Guatemala, Honduras, Nicaragua and Haiti, and that the U.S. is not expected to work directly with Nicaragua's government because of strained ties.
The package also includes more than $340 million for over 50 projects across the Western Hemisphere, Africa and Asia. Those efforts include ports, critical minerals, surveillance technology and security operations centers in Argentina and Belize.
A State Department official told AP that Chinese activity in the Western Hemisphere can create national security and economic risks for the U.S. The official said Chinese projects may look cheaper up front but can become more expensive because of cost overruns, hidden maintenance fees and poor performance.
AP reported that many of the programs were previously paused after last year's budget and personnel cuts tied to the Department of Government Efficiency and the dismantling of USAID.
By the numbers
- $175.8 million - requested to replace undersea telecom cables in the Caribbean and Central America.
- More than $340 million - proposed for over 50 projects aimed at countering Chinese influence.
- 5 countries - El Salvador, Guatemala, Honduras, Nicaragua and Haiti are named in the cable plan.
Yes, but: The proposal is still a request to Congress, not approved spending, and AP reports some programs were previously halted.
What's next: Congress will review the spending notice after it was sent late last week.