USAID: A Helping Hand or a Hidden Weapon? Why the US Suspended Aid for 90 Days

What is USAID and Why is it Important?

The United States Agency for International Development (USAID) was created in 1961 to provide foreign aid and humanitarian assistance. It supports healthcare, education, economic development, disaster relief, and democracy-building programs in over 100 countries, including India.

USAID has played a major role in India’s healthcare, education, and poverty reduction programs. It has funded projects to fight tuberculosis, HIV/AIDS, and maternal mortality while also improving access to clean water and sanitation. In education, USAID has helped train teachers and expand schooling for underprivileged children.

However, USAID is now under scrutiny, with allegations that it has been misused for political interference, even funding anti-government protests and extremist groups.

Why Did the US Suspend USAID for 90 Days?

On January 20, 2025, the US government suspended USAID funding for 90 days to investigate how American foreign aid is being used. President Donald Trump’s administration claims that foreign aid needs to be better aligned with US interests and should not be misused for illegal activities.

While some see this move as a routine review, others believe it is due to increasing accusations that USAID has funded groups involved in political unrest and terrorism.

This decision has raised major concerns in India and other developing countries, where USAID supports critical projects in healthcare, education, and disaster relief.

USAID’s Role in India: A Lifeline for Millions

How USAID Helps India

USAID has provided billions of dollars to support India’s healthcare, education, and infrastructure development. Some of its key contributions include:

• Healthcare: Funding for tuberculosis (TB) treatment, maternal and child health programs, and HIV/AIDS prevention.

• Education: Support for digital learning, teacher training, and school infrastructure improvement.

• Water & Sanitation: Investments in clean drinking water and proper sanitation in rural and urban areas.

• Climate Change & Agriculture: Programs to help farmers adopt climate-friendly techniques and improve food security.

With the 90-day funding freeze, many of these projects face uncertainty. Experts warn that a long-term suspension could affect millions of people who depend on these programs .

The Flip Side: Is USAID Used for Political Interference?

Controversies: USAID Funding Political Unrest in India

1. USAID’s Alleged Role in Influencing Elections

In February 2025, reports revealed that USAID allocated $21 million to the Consortium for Elections and Political Process Strengthening (CEPPS) for a program aimed at increasing voter turnout in India.

This funding raised suspicions of foreign interference in India's electoral process, prompting BJP leaders to demand an investigation.

Amit Malviya, BJP spokesperson, stated: “$21M for voter turnout? This is blatant interference in India’s democracy.”

 

2. USAID’s Links to Controversial NGOs

BJP MP Nishikant Dubey accused USAID of funding NGOs connected to George Soros’s Open Society Foundations, which allegedly supported anti-government protests.

These NGOs, including the Rajiv Gandhi Foundation and Rajiv Gandhi Charitable Trust, received USAID-linked funding.

Dubey demanded a full investigation, stating: “Foreign funding is being used to destabilize the Indian government."

 

3. USAID’s Funding of Anti-Government Protests

The Indian Intelligence Bureau (IB) reported that USAID-backed NGOs were involved in protests against government policies, including:

Farm Laws Protests (2020-21): Some USAID-funded groups allegedly provided logistical and financial support to protestors.

Anti-Coal and Anti-Dam Protests: Foreign-funded NGOs were accused of stalling infrastructure projects critical for India’s economic growth.

 The IB report suggested that these protests could reduce India's GDP by 2-3% annually.

 

4. USAID’s Influence in Indian Media and Activist Networks

Reports indicate that USAID funded Indian media organizations and activist networks that were highly critical of government policies.

Critics argue that these funds influenced public opinion and fueled unrest.

 Because of these concerns, the Indian government has tightened foreign funding rules, making it harder for NGOs to receive money from foreign donors like USAID.

USAID Controversies in Other Countries

India is not the only country where USAID has faced scrutiny. In many parts of the world, USAID has been accused of funding protests, interfering in elections, and even backing terrorist-linked groups.

Examples of USAID’s Controversies

• Serbia (2000): USAID funded youth group Otpor, which played a role in toppling President Slobodan Milošević.

• Ecuador (2010): USAID was accused of financing groups that helped organize anti-government protests.

• Haiti (1990s-2000s): USAID allegedly provided aid to paramilitary groups accused of human rights abuses.

• Palestine (2023): USAID funds were found to have reached organizations with links to extremist groups.

These incidents have led many critics to argue that USAID is not just a humanitarian agency but also a tool for US political influence .

Who is Accusing USAID of Misuse?

Several politicians, journalists, and analysts have raised concerns about USAID’s activities:

• Senator Joni Ernst (USA) accused USAID of poor financial oversight, allowing funds to reach extremist-linked organizations.

• Journalist Allan Nairn reported that USAID supported paramilitary groups in Haiti, fueling violence.

• Indian political analysts have warned that USAID-funded NGOs are influencing political movements and protests.

These allegations have damaged USAID’s reputation and raised questions about whether it is truly helping countries or pushing a hidden agenda.

 

What Happens Next?

With the 90-day suspension in place, USAID’s future is uncertain. The US government is expected to conduct a detailed audit of its foreign aid programs. Depending on the findings, aid could be resumed, reduced, or even permanently cut for certain countries.

Impact on India

• If USAID funding is permanently reduced, India’s healthcare and education programs could suffer.

• The Indian government might have to increase domestic funding to continue critical programs.

• NGOs dependent on USAID funds may struggle to operate.

Is This a Temporary Pause or a Bigger Shift?

Some experts believe this is part of a larger trend of reducing US foreign aid and focusing more on domestic priorities. If that happens, India and other countries may have to rethink their dependence on foreign funding.

Conclusion: A Necessary Review or a Political Game?

USAID has done tremendous good in India by improving healthcare, education, and living conditions for millions. However, the accusations of political interference raise serious concerns.

With the US suspending aid for 90 days, India must prepare for a future where it relies less on foreign assistance and more on its own resources.

The big question remains: Is USAID a genuine force for good, or is it being used as a hidden tool for political control? The next few months will provide some much-needed answers.