Donald Trump Calls $21 Million USAID Fund a ‘Kickback Scheme’

India (21 February, 2025): US President Donald Trump has once again stirred controversy by calling the now-cancelled $21 million USAID fund for voter turnout in India a "kickback scheme." Speaking at the Republican Governors Association meeting in Washington, DC, Trump questioned why American taxpayer money was being used for voter turnout in India when the US itself had its own election challenges to handle.

The USAID Funding Controversy
Trump alleged that the fund was not genuinely intended for voter turnout but was rather a way to funnel money back to undisclosed parties. He also raised concerns over a separate $29 million allocation to "strengthen the political landscape" in Bangladesh, questioning the true intent of such financial aid. His remarks, broadcasted by NBC News, have reignited debates over USAID’s role in foreign elections.

Department of Government Efficiency’s (DOGE) Statement
Shortly after Trump's statement, Elon Musk-led Department of Government Efficiency (DOGE) released a list of cancelled US taxpayer-funded initiatives. The document explicitly mentioned the $21 million fund that was earmarked for India’s voter turnout program, adding weight to Trump's claims.

Trump Suggests Foreign Election Interference
On Thursday, Trump hinted that the USAID funding might have been an attempt to influence India’s elections. “Why do we need to spend $21 million on voter turnout in India? Were they trying to get someone else elected?” he questioned. His statement has raised concerns about possible foreign interference in India’s democratic process.

Political Battle Between BJP and Congress
Trump’s remarks triggered a heated exchange between India’s ruling Bharatiya Janata Party (BJP) and the opposition Congress. BJP IT cell head Amit Malviya alleged that the funds were being used to sustain "deep-state assets" in India who work to suppress such revelations. He further argued that the funding followed a pattern of covert financial operations aimed at influencing India’s political climate.

Congress Fires Back
Responding to the allegations, Congress spokesperson Pawan Khera criticized the BJP for failing to stop foreign funds from entering India. He questioned how such a significant amount could have entered India under the Modi government’s watch. Khera also pointed out that the funds in question were reportedly disbursed in 2012, during the UPA regime, suggesting that BJP had benefited from it in the 2014 elections.

USAID’s Role in Global Elections
The controversy has sparked a larger debate about the role of USAID in funding electoral processes in foreign nations. Historically, USAID has provided financial aid for democratic development in multiple countries, but allegations of hidden political motives have often accompanied such efforts. The recent statements by Trump have intensified scrutiny over the organization’s activities in India and beyond.

Impact on India-US Relations
Trump’s comments may also have implications for diplomatic relations between India and the US. While India has not officially responded to his statements, the accusations could lead to increased caution regarding foreign-funded programs. Political analysts suggest that this issue could become a talking point in the upcoming elections, further polarizing the political discourse in India.

What Lies Ahead?
With elections approaching in India and the US, Trump’s remarks have added a new dimension to both domestic and international political debates. Whether the Indian government takes any action or seeks further clarification from the US remains to be seen. Meanwhile, the opposition and ruling parties continue to use the controversy as ammunition in their political battles.