The State Department is responsible for conducting foreign relations, including formulating policy on diverse international issues and coordinating and supporting U.S. programs and activities overseas. State is expected to perform a wide variety of functions that are critical to U.S. interests: provide leadership to help bring peace and stability to areas such as Bosnia and the Middle East; report on overseas events; influence other countries to adopt policies and practices consistent with U.S. interests on security, economic, narcotics, crime, environment, democracy, and other issues; assist U.S. business abroad; provide services to U.S. citizens overseas; and issue passports and visas. To develop options to allow the State Department to accommodate potential budget reductions, GAO analyzed State's reform initiatives and examined the functions of State's headquarters organization, overseas posts in 6 countries, and selected activities of 14 other U.S. government agencies that share responsibility with State for certain international activities.