Did India receive $21 million for elections from US? USAID funding row explained

An announcement by Elon Musk's DOGE about $21 million funding to India for "voter turnout" sparked a massive political row, with Donald Trump questioning the need for such funding, while Indian leaders disputed the claims.

In Short

• Elon Musk's DOGE cuts $21 million USAID funding to India
• BJP, Congress clash over claims of foreign interference in polls
• Reports claim no record of any such program found

A massive controversy erupted after Elon Musk's Department of Government Efficiency (DOGE), in a post on social media platform X, announced its decision to slash a $21 million program designed to increase voter turnout in India, among other funding to several other countries.

DOGE, established under the Trump administration to oversee and cut government spending, claimed that US taxpayer dollars had been allocated to various international projects, including election-related activities in Moldova, Bangladesh, Nepal, and other regions.

DOGE claimed that United States Agency for International Development (USAID), long regarded as the country's primary force for humanitarian aid, planned to spend $21 million on funding “voter turnout” in India.

The announcement, that came just days after United States President Donald Trump met Indian Prime Minister Narendra Modi, sparked a massive row between Centre and Congress in India as well as between the two countries.

TRUMP DEFENDS DECISION

Trump, while defending the decision, had said that India did not need the funding given its strong economic positioning. "They have a lot of money," he said.

"Why are we giving $21 million to India? They got a lot more money. They are one of the highest-taxing countries in the world in terms of us; we can hardly get in there because their tariffs are so high. I have a lot of respect for India and their Prime Minister, but giving $21 million for voter turnout? In India? What about voter turnout here?," Trump said at his Mar-a-Lago residence in Florida.

On February 22, Trump ramped up attack against India, saying "they (India) take advantage of 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 said.

BJP, CONGRESS SPAR

The Bharatiya Janata Party (BJP) and the Congress engaged in a war of words after the DOGE tweet's explosive claims gave both the parties ammo against each-other.

BJP IT cell head Amit Malviya shared DOGE's post with the caption, "$21M for voter turnout? This definitely is external interference in India's electoral process. Who gains from this? Not the ruling party for sure!"

In a series of posts, he accused the Congress of systematically allowing foreign interference in Indian governance. "The Congress-led UPA government systematically enabled the infiltration of India's institutions by forces opposed to the nation's interests -- those who seek to weaken India at every opportunity," he claimed.

The war of words intensified after an Indian Express investigation report claimed that no USAID grant has been allocated for any election-related project in India since 2008. It said the only USAID grant worth $21 million for voter participation was sanctioned in 2022 for a project in Bangladesh called "Amar Vote Amar" (My Vote is Mine).

Congress leader Pawan Khera, citing the report, hit out at the BJP and said that it was the saffron camp that had been in the Opposition for the longest period and had taken "direct help from external forces" to destablise Congress governments.

"Where are Ajit Doval, IB, and RAW? If USD 21 million could come to your country, then this is a slap in their (BJP's) face. Later they changed their statement and said that the money came in 2012. Did they win the 2014 election with that money?" Khera said.

Jairam Ramesh sought an apology from the BJP. Notably, the party had sought a White Paper detailing USAID's support to institutions in India over the decades.

The BJP, however, dismissed the claims made in the report, saying it misrepresented the reference to a $21 million funding tranche intended to "promote voter turnout in India". Amit Malviya said that the Express report sidestepped the Memorandum of Understanding (MoU) signed in 2012 between the Election Commission, under SY Quraishi, and the International Foundation for Electoral Systems (IFES).

WHAT EX-CEC SAID

Former Chief Election Commissioner (CEC) of India SY Quraishi refuted reports that the United States provides funding for boosting voter turnout in India and termed the reports "completely false and malicious".

“The report in a section of Media about an MoU by ECI in 2012 when I was CEC, for funding of a certain million dollars by a US agency for raising voter turnout in India does not have an iota of fact," the former CEC said in a post on X.

MEA RAISES CONCERNS

External Affairs Minister S Jaishankar, while speaking at the Delhi University Literature Festival, acknowledged that USAID was permitted to operate in India “in good faith, to do good faith activities.”

“I think some information has been put out there by Trump administration people, and obviously that is concerning. It would suggest that there are activities which have a certain objective out here to push a narrative or a viewpoint,” Jaishankar said.

He added that the government is actively investigating the matter. “As a government, we are looking into it, because such organisations have an obligation to report. And, my sense is, the facts will come out,” he said.

Ministry of External Affairs spokesperson Randhir Jaiswal, in response to a query during his weekly briefing, had said "relevant departments and agencies are looking into this matter".

"We have seen information that has been put out by the US administration regarding certain USA activities and funding. These are obviously very deeply troubling. This has led to concerns about foreign interference in India's internal affairs," Jaiswal said.

DID INDIA RECEIVE FUNDS?

India Today’s Data Intelligence Unit looked into the grants disbursed to India in the past 24 years as per the data available on the US Foreign Assistance website.

Between 2001 and 2024, USAID has disbursed a total of $2.9 billion to India. That’s an average of $119 million annually. $1.3 billion or 44.4 per cent of this money was granted during the Bharatiya Janata Party-led National Democratic Alliance regime (2014-2024). During the Congress-led United Progressive Alliance regime (2004-2013), India received $1.2 billion in grants, or 41.3 per cent.

USAID disbursed $650 million to India or 23 per cent between US FY2021 and US FY2024, with the highest grant ($228.2 million) received in US FY2022 alone when Joe Biden was president.

USAID was obligated to fund $500,000 via CEPPS for the “Elections” purpose to India in 2013, of which it finally paid $484,158 between 2013 and 2018. No funds were disbursed under the “Elections” purpose after 2018.

According to the US Foreign Assistance website, this money was given to “promote legitimate contestation for ideas and political power through democratic political processes that reflect the will of the people. Establish or develop competitive multiparty systems through improving the legal and regulatory framework under which political parties and political entities operate”.

The Washington Post reported that there was no record of any program as stated by the US President and said the USAID had a $21 million contract for Bangladesh, citing officials of the organisation. An Indian Express investigation report also claimed that the only USAID grant worth $21 million for voter participation was sanctioned in 2022 for a project in Bangladesh.