• Ministry of External Affairs (MEA) spokesperson Randhir Jaiswal said revelations about USAID funding for certain activities in the country are “deeply troubling” and have led to concerns about foreign interference in its internal affairs.

• He added that relevant departments and authorities are looking into the information put out by the United States administration regarding certain US activities and funding.

• Addressing an event in Miami, US President Donald Trump questioned the United States Agency for International Development’s (USAID) funding of $21 million for voter turnout in India and wondered whether it was trying to get someone else elected.

• A political row erupted following these remarks as BJP and Congress accused each other of weakening the governments in India by using foreign funds.

• Vice President Jagdeep Dhankhar also voiced concern over the alleged USAID funding for raising voter turnout in India.

The dismantling of USAID 

• US President Trump had ordered a 90-day pause on all foreign aid on his first day in office. The order was followed by aggressive moves to dismantle USAID, the main US foreign aid agency, including by placing much of its staff on leave and halting most of its funding and operations.

• The dismantling of USAID has already had significant impact across the globe, including shuttering HIV clinics, stranding emergency food aid, and halting research.

What is USAID?

• The US Agency for International Development (USAID) is the lead international humanitarian and development arm of the US government. 

• It was established in 1961 to implement the Foreign Assistance Act of 1961.

• It provides assistance to strategically important countries and countries in conflict.

• It leads US efforts to alleviate poverty, disease, and humanitarian need.

• The USAID assists US commercial interests by supporting developing countries’ economic growth and building countries’ capacity to participate in world trade.

• In FY2023, USAID managed more than $40 billion in combined appropriations, representing more than one-third of the funds provided in the FY2023 Department of State, Foreign Operations, and Related Programs (SFOPS) appropriation and international food aid provided in the agriculture appropriation. 

• USAID’s workforce totals more than 10,000, with approximately two-thirds serving overseas. The reported workforce level does not include institutional support contractors. The agency maintains more than 60 country and regional missions that design and manage a range of projects, most intended to meet specific development objectives as outlined in a Country Development Cooperation Strategy.

• Most projects are implemented through a grant, cooperative agreement, or contract — by one of thousands of foreign and US development partners, including non-profit organisations, for-profit contractors, universities, international organisations, and foreign governments.

• In FY2023, USAID provided assistance to approximately 130 countries. 

• The top 10 recipients of USAID-managed funds in FY2023 were Ukraine, Ethiopia, Jordan, Democratic Republic of Congo, Somalia, Yemen, Afghanistan, Nigeria, South Sudan, and Syria. 

• Reflecting USAID’s poverty reduction mandate, 70 of the 77 World Bank-determined low and lower-middle income countries received USAID assistance in FY2023.

• USAID programmed 40 per cent of its funds in Europe and Eurasia in FY2023, the majority of which were for Ukraine. 

• From the early 1990s, health was consistently the largest USAID sector by funding, bolstered since 2004 by billions of dollars in transfers from State’s President’s Emergency Plan for AIDS Relief (PEPFAR) and since 2020 by emergency assistance to combat the COVID-19 pandemic.

• In FY2022, humanitarian assistance surpassed health as the largest sector.

USAID’s contributions to India

• For decades, USAID has partnered with India to address the country’s most pressing health challenges, including maternal and child mortality, and the fight against polio, HIV, and tuberculosis.

• It has provided nearly $3 billion in total assistance to India over the last 20 years.

• USAID has helped India save millions of lives through TB interventions.

• USAID has supported India in achieving its development goals, supporting clean energy and environmental reform, combating climate challenges, improving health, encouraging inclusive economic growth, and bolstering the COVID-19 response.

• It supported the country to advance transition to a green, renewable, energy-secure economy by making clean energy cheaper and more accessible. Between 2015 and 2018, USAID helped improve access to modern, clean energy for more than 1.8 million people across nine states, reducing the amount of toxins in the air.

• With USAID support, India launched Green Bond market, allowing investors to focus their funds in activities linked to clean energy and climate resilience.

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