Donald Trump has escalated his criticism of USAID funding, alleging that the U.S. provided $18 million to India to assist with its election. He questioned why India, which he claims imposes some of the highest tariffs on American goods, would need financial aid from the U.S. He described India as a country that “takes advantage” of the United States by maintaining restrictive trade policies while receiving aid for electoral processes. Speaking at the Conservative Political Action Conference (CPAC), Trump said, “They take advantage of us pretty good. One of the highest tariffed nations in the world. We try and sell something, and they have a 200 percent tariff. And then we’re giving them a lot of money to help them with their election. It makes no sense.”
This marks the fourth time in less than a week that Trump has made these claims about USAID funding for India. He had previously suggested that such funds might have been used to influence India’s 2024 Lok Sabha elections, though he did not provide specific evidence. In his latest remarks, Trump took a more direct approach, mentioning Prime Minister Narendra Modi for the first time in connection with the alleged funding. “Twenty-one million dollars going to my friend Prime Minister Narendra Modi and India for voter turnout. We are giving $21 million for voter turnout in India. What about us? I want voter turnout too,” he said in a cryptic statement.
The controversy over USAID funding intensified after the Department of Government Efficiency (DOGE), led by Elon Musk, disclosed that a $21 million USAID grant intended to boost voter turnout in India had been canceled. However, later reports clarified that this specific funding was actually designated for Bangladesh, not India. Despite this correction, Trump has continued to reference the funding as a potential issue, repeatedly questioning why the U.S. would spend money on another country’s election process while facing its own domestic challenges.
The Indian government has taken the claims seriously, breaking its silence after four days of speculation. The Ministry of External Affairs (MEA) expressed deep concern over the allegations, calling them “very troubling” and indicating that multiple government departments are reviewing USAID’s involvement in India. The MEA spokesperson stated, “There are many departments and agencies in India that work with USAID. All these ministries and agencies are looking at this now.” The government’s response suggests an effort to ensure that foreign aid does not interfere with India’s electoral process or internal governance.
The issue has also triggered a political debate within India, with the ruling Bharatiya Janata Party (BJP) and the opposition Congress party exchanging accusations. Congress, pointing to reports debunking Trump’s claims, mocked the BJP, stating, “A matter between two friends,” about Modi and Trump’s previous camaraderie. The BJP, on the other hand, has remained cautious in its response, with party leaders avoiding direct comments on Trump’s allegations.
Beyond USAID funding, Trump used the controversy as an opportunity to criticize India’s trade policies. He argued that India imposes some of the highest tariffs on American products, making trade difficult for U.S. businesses. He also questioned why the U.S. was financially supporting other countries’ elections instead of focusing on its own system, proposing a return to paper ballots and even sarcastically suggesting that India should help the U.S. manage its elections. “Wouldn’t that be nice?” he remarked, drawing laughter from his audience.
The situation continues to evolve, with both the U.S. and Indian governments closely examining the implications of Trump’s remarks. While India is focused on ensuring transparency regarding foreign aid, the Biden administration has yet to issue a formal response to Trump’s accusations. With Trump actively campaigning for re-election, his criticisms of foreign aid spending are likely to remain a focal point of his speeches, particularly as he appeals to American voters who support his “America First” agenda. Meanwhile, India is expected to continue monitoring developments closely, as it navigates its relationship with both the current U.S. administration and Trump, who remains a dominant political figure.
