March 02, 2025
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Shadow Boxing Over USAID Funds

THE decision of US President Donald Trump to close the United States’ Agency for International Development (USAID) led to a slugfest between the two main ruling class parties – the BJP and Congress. Announcing the closure, a list of recipients of USAID was published. Quoting from this list, Trump claimed that $21 million was given for ‘voter turnout’ in India. Doubling down on this claim, Trump stated that this was intended to get ‘somebody else elected’. He followed this up in yet another public interaction stating that this money went to his “friend Prime Minister Modi in India for voter turnout”.

These statements warrant serious consideration and should be thoroughly investigated. If proven true, they would indicate nothing less than direct interference by external forces in the internal democratic processes of our country. We have the right to know who received this money and what its intended purpose was.

USAID is not an innocent agency that disburses foreign aid to deserving countries and communities without expecting anything in return. It operates as an extension of the US State Department, to carry forward its aggressive foreign policy objectives. Established by President John F. Kennedy during the Cold War to counter the growing influence of the Soviet Union, USAID has since played a key role in fomenting regime change, safeguarding US corporate interests, and crushing socialist movements.

As recently as 2023, former Mexican President Andrés Manuel López Obrador condemned US interference in his country's internal affairs and demanded that the US stop USAID funding to groups hostile to his government. In 2014, USAID was implicated in the creation of a 'Cuban Twitter' platform called 'ZunZuneo,' designed to incite unrest and destabilise socialist Cuba.

The use of aid as a tool to enforce regime change or dismantle governments perceived as threats to US interests is not a new phenomenon – nor is it something that has bypassed India. Evidence has emerged regarding how the US 'aided' the Congress party in removing Kerala's first elected communist government.

 

An interview given by former American Ambassador Ellsworth Bunker, who served as the US envoy to India from 1957 to 1959 – during the time when the CPI government led by EMS Namboodiripad was elected and subsequently dismissed – makes this point explicitly clear: “It’s a fact that we did give the Congress party financial assistance.” The transcripts of this interview are available in the Oral History Archives of Columbia University, where Bunker makes this startling admission.

Similarly, another US ambassador to India, Daniel Patrick Moynihan, who served from 1973 to 1975, makes a similar confession. In his memoir, A Dangerous Place, Moynihan reveals that the US provided money to the Congress party on two occasions to combat Communist influence in India –once in Kerala and again in West Bengal. These admissions by two former US envoys make it abundantly clear that the US actively intervened in India’s internal affairs and played an active role in the removal of a democratically elected Communist government.

The fact that both the Congress and the BJP (or its earlier incarnation, the Jan Sangh) had no objections to such interference speaks volumes about their commitment – or lack thereof – to safeguarding India’s sovereignty and democratic institutions.

Against this backdrop, the US President’s claim that $21 million was paid to influence ‘voter turnout’ in India is a serious allegation that cannot be ignored or dismissed. Moreover, it must not be buried under the weight of ‘whataboutery’ by either the BJP or the Congress.

The Minister of External Affairs stated that the Trump administration’s remarks are ‘concerning’ and that ‘the government is looking into it.’ Beyond this, however, he has remained completely silent on whether there is any truth to these claims. Certain media outlets have reported that the funds in question were not intended for India but for Bangladesh, suggesting that Trump may have confused ‘Dhaka’ with ‘Delhi.’ While this explanation might seem amusing, it is ultimately the government’s responsibility to provide a clear and transparent account of USAID’s involvement and activities in India.

The Finance Ministry, too, has remained silent on Trump’s claims. In its Annual Report, the Ministry mentioned that $750million (approximately Rs 6,501crore) was received from USAID in 2023−24 for seven projects. These projects include initiatives in areas like water and sanitation, but the report makes no mention of the $21 million in question.

According to government reports, USAID has provided over $17 billion (Rs 1.5 lakh crore) in funding to India since its establishment, supporting more than 555 projects across various sectors. Successive governments, regardless of which party was in power, have availed themselves of USAID funding.

The BJP, meanwhile, has weaponised the Foreign Contribution (Regulation) Act (FCRA) to block numerous research institutes and NGOs from accessing foreign funds. At the same time, it has allowed unrestricted access to the RSS and other organisations aligned with its ideology. This blatant double standard exposes the BJP’s duplicity and highlights its complicity in utilising foreign funds to advance its majoritarian ideological agenda.

The full details of USAID funding, the nature of its projects, and its involvement in India’s internal affairs must be brought to light. The people of India have the right to know how government policies are influenced by the US to further its business interests. More importantly, we have the right to know the extent of political influence exerted by the US through USAID.

The government must come clean to safeguard the integrity and sovereignty of our country.

(February 26, 2025)\