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Trump escalates USAID row, claims India 'exploiting' US aid

US President Donald Trump has once again criticised USAID funding to India, claiming the US unnecessarily granted $21 million for voter turnout efforts. Accusing India of imposing high tariffs while benefiting from American aid, Trump called the funding a “kickback scheme.” India has dismissed the allegations as “troubling.”

News Arena Network - Washington D.C. - UPDATED: February 23, 2025, 09:52 AM - 2 min read

President Donald Trump speaks to mediapersons before departing the White House in Washington, Saturday, Feb. 22, 2025.


United States President Donald Trump has renewed his attack on the United States Agency for International Development (USAID) funding to India, asserting that the agency had provided “$18 million” to aid India’s electoral process.

 

He claimed that the financial assistance was unnecessary, alleging that India imposes exorbitant tariffs on American goods while “taking advantage” of the US.

 

"Giving money to India for elections. Well, they don’t need money. They take advantage of us. They are one of the highest tariffs nations in the world. They have a 200 per cent tariff, and then we give them a lot of money for elections,” Trump stated.

 

 

Repeated criticism

 

The President’s remarks mark the fourth time in five days that he has raised the issue of USAID funding to India.

 

His latest comments come in the wake of the Elon Musk-led DOGE’s decision to cancel a $21 million grant earmarked for India and similar financial allocations to other nations earlier this month.

 

Trump also insinuated that the financial aid may have been intended to influence India’s 2024 Lok Sabha elections. Though he has provided no evidence, he has repeatedly linked the funding to voter turnout efforts in India.


Also read: Jaishankar on USAID row: '$21M funding is concerning'

 

On Saturday, Trump directly mentioned Prime Minister Narendra Modi for the first time while reiterating his claim.

 

"$21 million 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 remarked cryptically.

 

Concerns over ‘foreign interference’

 

India has strongly refuted Trump’s allegations, with the Ministry of External Affairs (MEA) calling the claims "very deeply troubling."

 

Breaking its silence four days after Trump first made his accusations, the Indian government raised concerns about foreign interference in its internal affairs.

 

"There are many departments and agencies in India that work with USAID. All these ministries and agencies are looking at this now," an MEA spokesperson stated at a press briefing on Friday.

 

Trump first questioned the USAID funds to India on 19 February, criticising the allocation of $21 million while lamenting that the US "can hardly get in there" due to high tariffs.

 

The following day, he sharpened his attack, suggesting that the Biden administration might have sanctioned the funds to influence electoral outcomes in India. "USD 21 million for voter turnout in India. Why do we need to spend USD 21 million for voter turnout in India? I guess they (the Biden administration) were trying to get somebody else elected. We have got to tell the Indian government... This is a total breakthrough," he said.

 

At a Republican governors’ conference on Friday, Trump went a step further, labelling the funding a "kickback scheme."

 

He remarked, "$21 million for voter turnout in India. Why are we caring about India turnout? We got enough problems... it’s a kickback scheme, you know."

 

With Trump intensifying his rhetoric ahead of the US presidential election, the controversy surrounding USAID’s role in India’s electoral process has escalated into a political flashpoint, with India closely monitoring developments.

Also read: Who pocketed $21 million?

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