Former U.S. President Donald Trump has once again criticised the allocation of $21 million in U.S. government funding to India through the United States Agency for International Development (USAID), labeling it a "kickback scheme."
The funds, provided in 2012 to support voter turnout initiatives, have sparked a fresh political debate in India, with the ruling Bharatiya Janata Party (BJP) and the opposition Congress exchanging accusations.
Trump's allegations
Speaking at a gathering of Republican state governors on Thursday, Trump questioned the rationale behind U.S. taxpayer money being spent on India’s electoral processes.
"Can you imagine all that money going to India? I wonder what they think when they get it. It’s a kickback scheme… they kick it back to the people that send it," Trump alleged, without providing evidence to support his claims.
He also questioned the $29 million allocated for “strengthening the political landscape” in Bangladesh and suggested that such expenditures indicate hidden financial deals.
"What the hell do I care about? We got enough problems of our own... All of this has been terminated," Trump declared, referring to the recent cancellation of USAID funds to multiple countries, including India, Nepal, and Bangladesh.
Political fallout in India
Trump’s remarks have reignited tensions in India’s political landscape, particularly between the BJP and Congress. The BJP has linked the former U.S. President’s claims to past comments made by Congress leader Rahul Gandhi during his visit to London in 2023. At the time, Gandhi had criticized the state of democracy in India and called on Western nations to take note.
The BJP seized upon Trump's statements, alleging that the $21 million USAID fund was used to sustain “deep-state assets” in India and to push an anti-India agenda.
Amit Malviya, the head of the BJP’s IT cell, posted on X (formerly Twitter), "A day after Trump spoke about $21 million being sent to India for 'voter turnout,' he has reiterated the charge. This money was used to sustain deep-state assets who work to defend and deflect such revelations."
Meanwhile, political analyst Pradeep Bhandari also called for an investigation into whether Congress and its ecosystem benefited from the USAID fund.
"Donald Trump, for the second time, has said $21 million has gone to 'voter turnout'... called it a 'kickback scheme.' An investigation is a must to find out if Rahul Gandhi and the Congress ecosystem were beneficiaries of this kickback scheme!" Bhandari said.
Congress demands investigation
Congress has strongly refuted the BJP’s allegations and has demanded a detailed investigation into the flow of USAID funds to India. The party has called for a White Paper tracking how the funds were used and whether they had any political implications.
Despite the BJP’s repeated attacks, neither Rahul Gandhi nor Congress has issued an official response to Trump’s claims.
USAID, DOGE, and the funding controversy
The controversy has intensified since the U.S. Department of Government Efficiency (DOGE)—a body led by billionaire Elon Musk—canceled USAID funding to multiple countries, including India. The department, created under Trump’s administration, has been tasked with reviewing and eliminating what it deems as wasteful government expenditures.
The BJP has also linked the funding issue to billionaire investor George Soros, alleging that USAID funds were funneled through his philanthropic organizations to support anti-India narratives. The party claims that such narratives were amplified by Congress, particularly before elections, to tarnish the image of the Indian government.
As the debate over USAID’s $21 million grant continues, the political battle between the BJP and Congress is expected to escalate. With Trump reiterating his allegations and the BJP demanding an investigation, the issue is likely to remain a major talking point in the run-up to India's next electoral cycle.
Also Read: MEA calls DOGE's $21M USAID fund claim 'deeply troubling'
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