USAID Funding and India
Context:
A program aimed at developing a secure 5G Open Radio Access Network (O-RAN) for India as part of the United States’ Indo-Pacific strategy, along with several clean air, water sanitation, and health initiatives, is set to come to a halt.
United States Agency for International Development (USAID)
It is the primary agency responsible for administering U.S. foreign assistance. Established in 1961 by President John F. Kennedy, USAID aims to promote global development, alleviate poverty, and advance U.S. foreign policy objectives. Key functions and activities include: Development Assistance, Humanitarian Aid, Environmental Protection and Economic Growth. It operates as an independent agency but receives policy guidance from the U.S. Secretary of State. The agency has missions in over 100 countries, primarily in Africa, Asia, Latin America, the Middle East, and Eastern Europe.
More on News
- This follows the Trump administration’s decision under the January 20 Executive Order titled “Reevaluating and Realigning United States Foreign Aid” to end foreign aid and largely dismantle the US Agency for International Development (USAID).
- USAID has played a crucial role in funding health and population-related projects in India over the past two decades.
- In recent years, its focus has extended to bolstering India’s systems as part of a broader Indo-Pacific partnership strategy aimed at countering China.
USAID’s Contributions to India
- 4th ODA: According to data from the Organisation for Economic Cooperation and Development (OECD), USAID ranked fourth among providers of Official Development Assistance (ODA) to India in 2022, contributing $228 million.
- Japan led the contributions with $2.97 billion, followed by European Union institutions ($383.5 million) and Germany ($235 million).
- One of the Highest Allocations: A report from foreignassistance.gov, a joint website of USAID and the US Department of State, shows that USAID has disbursed a total of $2.8 billion in ODA to India since 2001.
- The largest aid allocations came in 2022 and 2023, amounting to $228 million and $175 million, respectively.
- In 2024, $151 million had been disbursed as of December 19, the latest available update.
- After COVID-19: A notable increase in USAID’s allocation to India’s economic support fund after the COVID-19 pandemic—$148 million in 2022 and $81 million in 2023—was a key driver of the surge in aid.
- These years marked the first time since 2001-08 that annual disbursements exceeded $100 million, with the previous peak being $175 million in 2006.
Breakdown of USAID Funding to India (2022-2024)
- 2024: Of the $151 million disbursed, $80 million went to the Health and Population category, including $42.99 million for basic health programs, of which $16 million was allocated for COVID-19 efforts.
- Other key allocations included $20.94 million for maternal and child health and family planning, and $17.12 million for environmental protection programs.
- 2023: USAID provided India with $175 million, with $120 million dedicated to Health and Population.
- This included $83.22 million for basic health programs, with $54 million directed toward COVID-19 control.
- Additional funds were allocated to maternal and child health ($16.28 million), HIV/AIDS ($12.13 million), and environmental protection ($9.62 million).
- 2022: Of the $228 million disbursed, $180 million was allocated to Health and Population, including $140.7 million for basic health and $120 million specifically for COVID-19 response.
- Maternal and child health received $25.09 million, HIV/AIDS received $10.57 million, and environmental protection was allocated $7.18 million.
Implications of USAID Funding Halt
The Trump administration’s move to curb USAID funding as part of efforts to reduce US government spending is expected to have a significant impact on health and social sector programs in developing nations, including India
- Tuberculosis: One of the key programs affected will be Breaking the Barriers, which aims to raise awareness about tuberculosis in economically disadvantaged regions of Karnataka, Telangana, Bihar, and Assam.
- USAID had allocated $7 million to the program between 2022 and 2023 through the Karnataka Health Promotion Trust (KHPT).
- A senior KHPT official confirmed that the program would be shut down, limiting potential innovations in tuberculosis prevention.
- HIV/AIDS: USAID and the President’s Emergency Plan for AIDS Relief (PEPFAR) have played vital roles in global HIV/AIDS prevention efforts.
- The German population health researcher Dr. Till Barnighausen warned that USAID’s exit would lead to disruptions that could result in lives lost and hinder HIV transmission prevention.
- Humanitarian Impact: At a public lecture in Bengaluru, German Consul General Achim Burkart emphasised the humanitarian impact of these cuts, citing Zambia as an example where 150,000 people could be left without essential HIV medication.
Legal Developments and Reprieve
- On February 13, a US Federal Court issued a stay on the January 20 executive order halting all foreign aid.
- The Trump administration subsequently appealed to the US Supreme Court, arguing that 5,800 foreign aid programs had been reviewed, with 500 retained.
- However, on March 5, in a 5-4 verdict, the Supreme Court rejected the US government’s request to overturn the February 13 ruling, providing temporary relief to affected programs.
While the long-term fate of USAID funding remains uncertain, the immediate impact on India’s health initiatives, particularly those targeting tuberculosis, HIV/AIDS, and maternal health, is expected to be substantial.
