‘$21 Million USAID Fund to India’: What’s the Controversy About?
Trump Calls the Alleged Funding a ‘Kickback Scheme’ Without Evidence
February 22, 2025
Photo by Gage Skidmore, via Wikimedia Commons
U.S. President Donald Trump has claimed that the Biden administration allocated $21 million through USAID for “voter turnout” in India, now calling it a “kickback scheme” without providing evidence or elaborating on who really benefitted. He suggests that the funds were meant to influence India’s 2024 Lok Sabha elections.
The controversy, which began a few days ago, continues despite a fact-check report from The Indian Express stating that the $21 million was actually allocated to Bangladesh in 2022, not India. The ruling Bharatiya Janata Party (BJP) continues to use it to attack the opposition, while the Congress party has dismissed it as a distraction.
The BJP is particularly attacking Congress party leader Rahul Gandhi, referring to his past statements about foreign involvement in Indian politics, according to media reports.
In his speech at an event for Indian diaspora in London in 2023, Gandhi criticised the state of democracy in India and said that democratic institutions were under attack. He remarked that the U.S. and European nations were largely ignoring this decline, suggesting that democratic forces worldwide should take note. BJP leaders accused him of seeking foreign intervention by raising India’s internal political issues on an international platform, although his speech was not a violation of any legal framework. The role of the international community in safeguarding democracies includes monitoring human rights, promoting free and fair elections and supporting democratic institutions through diplomatic engagement.
Trump, known for his blunt and often unverified claims, brought up the USAID funding while listing foreign aid initiatives that were scrapped by the Elon Musk-led Department of Government Efficiency (DOGE), a newly created body aimed at cutting government spending. He questioned why American taxpayers’ money was being spent on voter turnout in India, suggesting that such expenditures indicated a kickback scheme.
In other words, Trump is claiming that the $21 million USAID funds were not genuinely intended to support democratic participation but were instead used to benefit certain individuals or groups, potentially to influence India’s 2024 elections—a highly sensitive and irresponsible allegation, yet made without any evidence.
The USAID, which stands for United States Agency for International Development, is an independent federal agency responsible for administering civilian foreign aid and development assistance on behalf of the U.S. government. It works under the policy direction of the U.S. Department of State, meaning its funding, priorities and initiatives align with U.S. foreign policy objectives. The agency is primarily funded by Congress-approved budgets and is overseen by the Executive Branch, with its administrator appointed by the U.S. President and confirmed by the Senate. USAID supports projects in governance, health, education and economic development worldwide.
BJP IT Cell head Amit Malviya claimed on X that the USAID funds were used to support “deep-state assets” in India. He added that Trump distinguished between the USAID funding to India and another $29 million allocated to Bangladesh, casting doubt on the accuracy of The Indian Express investigation.
The Congress party countered the BJP’s claim, referring to Prime Minister Narendra Modi’s past interactions with Trump.
Congress party leader Pawan Khera argued that Modi had engaged with Trump despite his controversial stance on India, as reported by ANI. “PM Modi went to the U.S. uninvited. He was not invited to President Donald Trump’s swearing-in ceremony, but he went there anyway. U.S. President Donald Trump said he would impose reciprocal tariffs, but he (PM Modi) was just smiling...You (PM Modi) have come (from the U.S.) after hearing Trump’s threat. U.S. President Donald Trump said that he would end BRICS, but he (PM Modi) was still smiling...America’s Adani, Elon Musk called F-35 fighter jets junk. The same is being imposed on India, and he (PM Modi) was just smiling...This happened in the U.S. and they are telling us that we took money from U.S. aid to destabilise them...,” he was quoted as saying.
Trump has threatened to impose reciprocal tariffs on India, arguing that New Delhi was taking advantage of the U.S. with high import duties on American goods. He also stated that he would end BRICS, claiming it was being used to undermine U.S. influence in global trade and finance.
Khera also brought up Musk’s critical remarks about the F-35 fighter jets, suggesting that India was being pressured into accepting substandard defence deals from the U.S. He framed the BJP’s accusations as an attempt to distract from Modi’s foreign policy failures and his handling of U.S.-India relations.
