This week, the US Agency for International Development (USAID) stopped all operations in India. This decision comes during a funding review by the Trump administration, which may soon place USAID under the control of the State Department. This change follows a significant freeze on foreign funding initiated by the new government.
The halt in operations has hit USAID hard. As part of a broader effort to cut federal programs deemed wasteful or politically misaligned, many staff members are now uncertain about their future. This sudden announcement has left them scrambling to find answers, with some even beginning to pack their belongings or make arrangements for their children’s education.
India has long benefited from US economic aid, which has helped improve infrastructure and address various health issues over the decades. Projects have included building educational institutions and supporting key health programs like immunization, maternal and child health, and combating diseases such as HIV/AIDS and tuberculosis. However, India’s reliance on US support has decreased since a pivotal decision in 2004 to reject conditional foreign aid. In the upcoming fiscal year, US aid obligations to India are projected to be around $141 million.
Between 2015 and 2024, India received approximately $1.5 billion from USAID, though this amount varied year to year. In the past year, health projects received the most support. For example, a program aimed at reducing maternal and child mortality was awarded $10.2 million. Additionally, $7.2 million was allocated from the Department of State to Project Accelerate, which focuses on preventing HIV/AIDS in India. USAID also supported Tibetan communities in South Asia with $6.6 million for socio-economic development initiatives.
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