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by This article explores the controversy surrounding USAID and the allegations imposed by the Trump administration on the misappropriation of USAID’s funds for aiding electoral turnout in India. It examines the ripple effects of Trump’s claims on the external relations with India as well as the latter's internal politics.
A Crisis Watch Desk commentary by Arshia Mehta | Edited by Harshita Prashar | Research and Publications Division
INTRODUCTION:
The United States Agency for International Development (USAID) is an independent agency of the U.S. government responsible for overseeing foreign aid and development assistance. Established in 1961 under the Kennedy administration, USAID was created to consolidate and streamline U.S. foreign assistance programs under a single organisation. While it operates under the authority of the Secretary of State, it maintains functional independence, allowing it to execute its mission without external interference. USAID implements programs across a wide range of sectors, including healthcare, disaster relief, economic development, environmental protection, democracy promotion, and education. Since 2001, it has managed an average annual budget of approximately $23 billion, funding initiatives in over 100 countries. Its operations primarily focus on regions such as Africa, Asia, Latin America, the Middle East, and Eastern Europe, where it works to foster stability, growth, and humanitarian support.
With the Republican party back in power and Donald Trump returning to the presidency, the future of USAID remains uncertain. Shortly after Trump resumed office, the agency announced that thousands of employees would be placed on leave and began recalling personnel from missions across the globe. Trump has emphasized his commitment to aligning foreign aid with his “America First” agenda, signalling a shift in priorities for international assistance. As a result, the global development sector is preparing for significant disruptions to humanitarian programs worldwide.
Moreover, the Trump administration has alleged that $21 million had been allocated to influence voter turnout in India, further adding to their claims of misuse of USAID and taxpayer dollars.
THE FUTURE OF USAID UNDER TRUMP:
The USAID, which has effectively functioned worldwide since 1961, has never been contested on a scale as large as under the Trump administration. It has carried out humanitarian missions during famine, epidemic, drought, disaster calamities and much more. USAID acts as a crucial pillar for US soft power in global politics by providing essential items including food, water, funds, healthcare, education and governmental support to the suffering countries, globally. The vast majority of USAID money is spent in Asia, sub-Saharan Africa and Europe - apart from humanitarian efforts in Ukraine. The agency’s primary functions consist of
“providing assistance to strategically important countries and countries in conflict, leading U.S. efforts to alleviate poverty, disease, and humanitarian need and assisting U.S. commercial interests by supporting developing countries’ economic growth.”
According to government data, the US spent $68bn on international aid in 2023. With this knowledge made public and over-emphasized recently, a strong conservative wave of anti- USAID opinions has flooded the US. Donald Trump, the 47th President of the country, has openly voiced his plan to merge USAID with the US Department of State, effectively putting it under harsh scrutiny and reducing its autonomy. Moreover, President Trump’s ‘right hand’ and senior advisor, Elon Musk, who has been engaged in a cost-cutting agenda through the Department of Government Efficiency or DOGE has also announced his plan to effectively shut down USAID. On his first day in office, Trump issued an executive order announcing a ninety-day freeze on U.S. foreign development assistance and calling for a review of all foreign assistance programs. Moreover, thousands of employees have been placed on leave and the administration has begun recalling personnel from missions across the globe.
However, this move cannot and will not go unchallenged. While USAID was established with the executive order of the Kennedy administration, it later became an executive agency which cannot be abolished merely through another order. Although the White House holds significant influence over USAID and Foreign aid, this move can be challenged by the Supreme Court on all accounts. A move like this would require a majority vote in Congress, something which the GOP does not have currently. Without an official bill being passed by the majority, the USAID cannot stand nullification.
THE USAID CONTROVERSY AND THE INDIAN ELECTIONS:
In a tirade of allegations and criticisms against USAID, Donald Trump alleged that 21 million dollars were allocated to India to influence voter turnout. While addressing the FII PRIORITY Summit in Miami, Trump said, "Why do we need to spend $21 million on voter turnout in India? I guess they were trying to get somebody else elected. We have got to tell the Indian Government this is a total breakthrough." Moreover, during a speech at the Conservative Political Action Conference (CPAC), Trump remarked, "18 million dollars for helping India with its elections. Why the hell? Why don't we just go to old paper ballots, and let them help us with their elections, right? Voter ID. Wouldn't that be nice? We're giving money to India for elections. They don't need money."
Despite several ongoing investigations, President Trump has not backed his claims with external evidence or concrete proof. An investigation by The Indian Express has revealed that no such funds were ever allocated to India, contradicting earlier claims. Simultaneously, USAID officials have also denied any program aimed at influencing India’s electoral process. Instead, official records indicate that the $21 million in question was designated for a non-profit organization in Bangladesh, to promote political engagement. This allocation occurred against the backdrop of a severe governmental crackdown on political opposition in Bangladesh.
Seizing onto this array of baseless and unchecked implications, the BJP IT cell recently tweeted "USD 21M for voter turnout? This definitely is external interference in India’s electoral process. Who gains from this? Not the ruling party for sure!". Several other leaders also see this as proof of the international and external influence of the West and as a threat to Indian democracy. On the other hand, Congress’s spokesperson, Jairam Ramesh sees this as an insult to Indian political ethos as he remarked, “Elon Musk made a fake claim, Trump got confused between Dhaka and Delhi. The BJP should just answer this: Why did the BJP spread fake news about India’s democracy?”
IMPLICATIONS FOR INDIA:
This claim, albeit, not backed by any sources, carries implications for India on multiple fronts. Not only has this fueled the wildfire of political pundits delegitimizing the Indian elections, but has also stirred up the masses and voters of the country. It has the potential to reduce public trust in governments, including the opposition and the ruling party, while simultaneously giving rise to scepticism about foreign influence in Indian policymaking. Even after reports were issued, segments of the population continued to believe the initial narrative, potentially influencing voter sentiment and public discourse. The claim also holds immense geopolitical repercussions, especially between the US and India. Moreover, with USAID being frozen for over 90 days, the relationship and the US’ soft power stand under threat.
REFERENCES:
INTRODUCTION:
The United States Agency for International Development (USAID) is an independent agency of the U.S. government responsible for overseeing foreign aid and development assistance. Established in 1961 under the Kennedy administration, USAID was created to consolidate and streamline U.S. foreign assistance programs under a single organisation. While it operates under the authority of the Secretary of State, it maintains functional independence, allowing it to execute its mission without external interference. USAID implements programs across a wide range of sectors, including healthcare, disaster relief, economic development, environmental protection, democracy promotion, and education. Since 2001, it has managed an average annual budget of approximately $23 billion, funding initiatives in over 100 countries. Its operations primarily focus on regions such as Africa, Asia, Latin America, the Middle East, and Eastern Europe, where it works to foster stability, growth, and humanitarian support.
With the Republican party back in power and Donald Trump returning to the presidency, the future of USAID remains uncertain. Shortly after Trump resumed office, the agency announced that thousands of employees would be placed on leave and began recalling personnel from missions across the globe. Trump has emphasized his commitment to aligning foreign aid with his “America First” agenda, signalling a shift in priorities for international assistance. As a result, the global development sector is preparing for significant disruptions to humanitarian programs worldwide.
Moreover, the Trump administration has alleged that $21 million had been allocated to influence voter turnout in India, further adding to their claims of misuse of USAID and taxpayer dollars.
THE FUTURE OF USAID UNDER TRUMP:
The USAID, which has effectively functioned worldwide since 1961, has never been contested on a scale as large as under the Trump administration. It has carried out humanitarian missions during famine, epidemic, drought, disaster calamities and much more. USAID acts as a crucial pillar for US soft power in global politics by providing essential items including food, water, funds, healthcare, education and governmental support to the suffering countries, globally. The vast majority of USAID money is spent in Asia, sub-Saharan Africa and Europe - apart from humanitarian efforts in Ukraine. The agency’s primary functions consist of
“providing assistance to strategically important countries and countries in conflict, leading U.S. efforts to alleviate poverty, disease, and humanitarian need and assisting U.S. commercial interests by supporting developing countries’ economic growth.”
According to government data, the US spent $68bn on international aid in 2023. With this knowledge made public and over-emphasized recently, a strong conservative wave of anti- USAID opinions has flooded the US. Donald Trump, the 47th President of the country, has openly voiced his plan to merge USAID with the US Department of State, effectively putting it under harsh scrutiny and reducing its autonomy. Moreover, President Trump’s ‘right hand’ and senior advisor, Elon Musk, who has been engaged in a cost-cutting agenda through the Department of Government Efficiency or DOGE has also announced his plan to effectively shut down USAID. On his first day in office, Trump issued an executive order announcing a ninety-day freeze on U.S. foreign development assistance and calling for a review of all foreign assistance programs. Moreover, thousands of employees have been placed on leave and the administration has begun recalling personnel from missions across the globe.
However, this move cannot and will not go unchallenged. While USAID was established with the executive order of the Kennedy administration, it later became an executive agency which cannot be abolished merely through another order. Although the White House holds significant influence over USAID and Foreign aid, this move can be challenged by the Supreme Court on all accounts. A move like this would require a majority vote in Congress, something which the GOP does not have currently. Without an official bill being passed by the majority, the USAID cannot stand nullification.
THE USAID CONTROVERSY AND THE INDIAN ELECTIONS:
In a tirade of allegations and criticisms against USAID, Donald Trump alleged that 21 million dollars were allocated to India to influence voter turnout. While addressing the FII PRIORITY Summit in Miami, Trump said, "Why do we need to spend $21 million on voter turnout in India? I guess they were trying to get somebody else elected. We have got to tell the Indian Government this is a total breakthrough." Moreover, during a speech at the Conservative Political Action Conference (CPAC), Trump remarked, "18 million dollars for helping India with its elections. Why the hell? Why don't we just go to old paper ballots, and let them help us with their elections, right? Voter ID. Wouldn't that be nice? We're giving money to India for elections. They don't need money."
Despite several ongoing investigations, President Trump has not backed his claims with external evidence or concrete proof. An investigation by The Indian Express has revealed that no such funds were ever allocated to India, contradicting earlier claims. Simultaneously, USAID officials have also denied any program aimed at influencing India’s electoral process. Instead, official records indicate that the $21 million in question was designated for a non-profit organization in Bangladesh, to promote political engagement. This allocation occurred against the backdrop of a severe governmental crackdown on political opposition in Bangladesh.
Seizing onto this array of baseless and unchecked implications, the BJP IT cell recently tweeted "USD 21M for voter turnout? This definitely is external interference in India’s electoral process. Who gains from this? Not the ruling party for sure!". Several other leaders also see this as proof of the international and external influence of the West and as a threat to Indian democracy. On the other hand, Congress’s spokesperson, Jairam Ramesh sees this as an insult to Indian political ethos as he remarked, “Elon Musk made a fake claim, Trump got confused between Dhaka and Delhi. The BJP should just answer this: Why did the BJP spread fake news about India’s democracy?”
IMPLICATIONS FOR INDIA:
This claim, albeit, not backed by any sources, carries implications for India on multiple fronts. Not only has this fueled the wildfire of political pundits delegitimizing the Indian elections, but has also stirred up the masses and voters of the country. It has the potential to reduce public trust in governments, including the opposition and the ruling party, while simultaneously giving rise to scepticism about foreign influence in Indian policymaking. Even after reports were issued, segments of the population continued to believe the initial narrative, potentially influencing voter sentiment and public discourse. The claim also holds immense geopolitical repercussions, especially between the US and India. Moreover, with USAID being frozen for over 90 days, the relationship and the US’ soft power stand under threat.
REFERENCES:
- The Guardian. (2025, February 24). Musk, Doge, and the claim about USAID funds for India: What Trump said about Modi and elections. The Guardian. https://www.theguardian.com/world/2025/feb/24/musk-doge-claim-usaid-funds-india-trump-modi
- Council on Foreign Relations. (n.d.). What is USAID and why is it at risk? Council on Foreign Relations. https://www.cfr.org/article/what-usaid-and-why-it-risk
- India Today. (2025, February 26). Foreign funding & elections: The USAID debate in India explained. India Today. https://www.indiatoday.in/world/us-news/story/foreign-funding-elections-the-usaid-debate-in-india-explained-glbg-2685621-2025-02-26
- BBC News. (2025, February 24). What is USAID and why is Trump poised to 'close it down'? BBC News. https://www.bbc.com/news/articles/clyezjwnx5ko
- The Indian Express. (2025, February 26). USAID funding: Team Elon Musk flags, Donald Trump waves, but a fact-check—$21 million did not go to India for voter turnout, was for Bangladesh. The Indian Express. https://indianexpress.com/article/express-exclusive/usaid-funding-team-elon-musk-flags-donald-trump-waves-but-a-fact-check-21-million-did-not-go-to-india-for-voter-turnout-was-for-bangladesh-9847463/
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