After Donald Trump’s order, US mission in India starts ‘review’ of aid

A report in the UK-based daily Financial Times said on Saturday that “US secretary of state Marco Rubio has ordered an immediate halt to work on virtually all existing foreign aid programmes pending a review, according to an internal cable seen by FT”.

Asked whether it impacted the aid activities in India, a US Embassy spokesperson told The Indian Express on Saturday, “We are carrying out a review to ensure that our existing grants comply with executive orders.”

The Financial Times said, “In the cable sent to the state department and USAID on Friday, Rubio said that all new foreign aid disbursements were to be suspended, and contracting officers and grant officers needed to ‘immediately issue stop-work orders…  until such time as the secretary shall determine, following a review’.”

The USAID partners with India to address critical development challenges through the US government’s Feed the Future, Global Health and Global Climate Change initiatives.

📌 On global health, USAID supports eliminating preventable child and maternal deaths and in creating an AIDS-and tuberculosis-free generation in partnership with both central government and a growing number of private sector actors. For example, India accounts for 26% of global tuberculosis cases and one of the highest burdens of multidrug-resistant tuberculosis in the world. USAID introduced GeneXpert rapid diagnostic testing machines across the country.

📌 On agriculture and food security, under Feed the Future, USAID is engaging several public and private sector partners from India, Africa and the US to accelerate sharing and transfer of Indian agricultural innovations that enhance food security throughout Africa and Asia. Innovations supported through USAID partnerships with Indian organisations include a low-cost tractor, an organic growth stimulant made from seaweed and a solar dehydrator — all devised to increase yields and incomes.

📌 On environment, USAID is supporting India in accelerating its transition to a low emission and energy secure economy through clean energy partnerships. The Partnership to Advance Clean Energy (PACE) programme has mobilised roughly $2.38 billion in public and private sector resources for projects such as “net zero” energy buildings, smart grids and more efficient heating, ventilation and air conditioning systems in India. USAID is also working with local stakeholders to reduce emissions and enhance carbon sequestration through India’s forests while enhancing forest-dependent livelihoods.

📌 Under the Read, Engage, Achieve, Dream Alliance (READ Alliance), USAID supports various projects that employ innovative approaches to strengthen reading skills of low-income, primary school-age children. Each initiative is implemented by an Indian organisation and leverages significant private sector resources.

“The review period is expected to last as long as 85 days, leaving the fate of hundreds of US foreign aid contracts, which were worth more than $70bn in the 2022 fiscal year, potentially in limbo for as long as three months,” the Financial Times said.