Trump Criticizes USAID Funding for India, Strains Diplomatic Ties

US President Donald Trump has condemned the United States Agency for International Development (USAID) for allegedly directing funds to influence India's electoral process, questioning why American taxpayers' money was being sent overseas. Speaking at the Conservative Political Action Conference (CPAC) in Washington on Sunday, Trump claimed that India already benefits from high tariffs on American goods and does not need financial assistance for its elections.

“Eighteen million dollars for helping India with its elections. Why the hell? Why don’t we just go to old paper ballots and let them help us with our elections, right? Voter ID. Wouldn’t that be nice?” Trump said. “We’re giving money to India for elections. They don’t need money.”

While Trump’s figure could not be independently verified, a report from the Elon Musk-led Department of Government Efficiency (DOGE) suggested that $21 million had been allocated to India for "voter turnout" initiatives.

“They take advantage of us pretty good. One of the highest tariffed nations in the world. We try and sell something, they have a 200 percent tariff. And then we’re giving them a lot of money to help them with their election,” Trump added.

India Responds to Trump’s Allegations

India's External Affairs Minister S. Jaishankar addressed the allegations, expressing concern and noting that the government would investigate the claims.

“Some information has been put out there by the Trump administration, and obviously, that is concerning. As a government, we are looking into it. My sense is that the facts will come out. USAID was allowed here in good faith to carry out its activities, and now, suggestions are being made that there are activities conducted in bad faith. If that’s the case, the country should know who is involved,” Jaishankar said.

In response, the opposition Congress party has demanded a white paper on foreign aid received by India and called for legal action against those spreading "baseless" allegations of foreign interference in India's democratic process.

Congress spokesperson Pawan Khera refuted Trump’s claims, stating, “Indian news outlets have fact-checked the BJP and Modi government’s minister’s claim as untrue. The funds went to Bangladesh, not India. While India did receive USAID funding, it was not for increasing voter turnout.”

Allegations of Funding in Bangladesh

In addition to his claims about India, Trump alleged that a firm in Bangladesh had received $29 million in USAID funding.

“They got $29 million. Can you imagine? You have a small firm, and then you get $29 million from the US government. They’ll be on the cover of a top business magazine soon for being great scammers,” Trump remarked.

Congress has urged Prime Minister Narendra Modi to personally address these claims and refute the allegations. The party also criticized the ruling BJP, accusing it of using Trump’s remarks to promote conspiracy theories.

“There’s no record of a Consortium for Elections and Political Process Strengthening (CEPPS) program in India. CEPPS did have a $21 million USAID contract, but it was for Bangladesh, not India,” Khera explained.

BJP Dismisses Congress’s Defense

BJP leader Ajay Alok dismissed Congress’s rebuttal as "baseless," asserting that the Modi government has significantly reduced foreign aid.

“We’ve already shown that the government received $2.1 billion between 2004-2014 and just $1.5 million between 2014-2025. We are shutting down these things. The Indian government is acting, and the US government has issued a list of who has received the money. This is part of a deep state,” Alok claimed.

With both the Indian and Bangladeshi governments yet to issue formal statements, the controversy shows no sign of resolution, further straining diplomatic relations between India and the United States ahead of significant elections in both countries.