How Trump’s decision to shut down USAID may impact projects in India. Here are the details

The recent decision by the Trump administration to freeze funding for the United States Agency for International Development (USAID) has raised concerns about the future of key projects in India. USAID has been a significant partner in India’s development for over 70 years, supporting initiatives in health, education, sanitation, and agriculture. With the suspension of USAID funding, many critical programs are now at risk.

USAID in India

This was established in 1961 by President John F. Kennedy as part of the US government’s efforts to assist countries in their development, following the success of the Marshall Plan that helped rebuild Europe after World War II. Since then, USAID has become the largest humanitarian and development arm of the US government, working in over 130 countries. In India, USAID has been working for more than 70 years, playing a key role in improving the country’s healthcare system, education, sanitation, and addressing climate change.

Over the years, India has received substantial support from USAID, helping the country tackle pressing challenges. For the fiscal year 2023, India was allocated approximately $140 million in USAID funding. Despite being a small portion of India’s overall budget, USAID’s support has been critical in advancing several important projects. In the 2023-24 fiscal year, USAID planned to allocate $55 million to health programs, $18 million to environmental projects, and $7.8 million to social infrastructure, as reported by the US government’s Foreign Assistance website.

Health and Education in India

USAID has made a significant contribution to India’s health sector. The agency has worked closely with the Indian government to address critical health issues like maternal and child mortality, tuberculosis (TB), and HIV. According to reports, USAID has helped save the lives of over 2 million children in India since 1990, reducing deaths from pneumonia and diarrhoea.

It has also supported the Indian government’s campaign to eliminate TB, training health providers and improving access to care. During the COVID-19 pandemic, USAID committed nearly $13.1 million to support testing, surveillance, and public health communication, along with supplying 200 state-of-the-art ventilators to India.

In education, USAID has helped improve literacy and teaching standards across India. It supported the Padhe Bharat Badhe Bharat (Read India, Progress India) initiative, which reached over 2 million students. The agency also trained more than 61,000 teachers to improve their teaching skills and engage students more effectively. However, with the suspension of USAID funding, the continuation of these health and education programs could be significantly delayed.

Environmental and Sanitation Programs at Risk

USAID has also contributed to improving sanitation and environmental conditions in India. The agency supported the Indian government’s Swachh Bharat Abhiyan (Clean India Mission), helping over 300,000 people gain access to toilets. Through its efforts, 25,000 communities became free from open defecation. Additionally, USAID has helped improve water, sanitation, and hygiene (WASH) solutions, raising awareness and ensuring better sanitation practices in rural areas.

More than 42,000 toilets were mapped on Google, helping communities improve access to sanitation facilities. With the freeze on USAID funding, the progress made in these areas could now be reversed.

In agriculture, USAID has assisted over 130,000 farmers by promoting improved farming practices, offering crop insurance, and providing weather data to reduce climate-related risks. The agency also partnered with India’s largest weather services company to expand the network of automatic weather stations, benefiting vulnerable farmers by sending localized weather data and risk mitigation tools via SMS. These agricultural support programs, which have helped increase farmers’ yields and incomes, may now face an uncertain future.

Freeze on USAID

The freeze on USAID funding is part of a broader move by the Trump administration to review and realign US foreign aid. This decision follows an executive order by President Trump to halt foreign aid temporarily, and in January 2021, USAID was directed to suspend all ongoing projects. As part of this shift, Elon Musk, a close ally of Trump, called USAID a “criminal organization,” further amplifying concerns about the agency’s future. Trump himself referred to USAID as “a group of radical left lunatics” during a media briefing, questioning the agency’ effectiveness.

Though USAID’s funding may only represent a small fraction of India’s total budget, its impact on critical sectors such as health, education, and environmental sustainability is significant. The suspension of USAID-supported projects will likely affect millions of people who rely on these programs for essential services and support.

With over 350 US government websites, including that of USAID, temporarily offline, there is growing uncertainty about the continuity of US foreign aid programs. While it is unclear whether the websites were taken down at Trump’s direction or for other reasons, their disappearance highlights the disruption caused by the freeze on funding.

The suspension of USAID’s funding could also change the nature of the US-India relationship, as many collaborative projects will be put on hold.