According to an article in the Washington Post:
"The [Peace Corps], which has a budget of $330.8 million, is facing an anticipated shortfall of about $18 million this fiscal year and next, officials say. Much of the gap can be attributed to the declining value of the dollar overseas and the rising cost of energy and other commodities, officials said. That inflates expenses for overseas leases, volunteer living costs and salaries for staff abroad, most of whom are paid in local currencies.
Those factors 'have materially reduced our available resources and spending power,' Peace Corps Director Ronald A. Tschetter wrote. 'Tough budgetary decisions must be made now in order to ensure a financially healthy agency next fiscal year,' he added."