USAID

USAID (United States Agency for International Development) has been a significant contributor to India's health and development programs for over two decades.

  • In 2022, USAID was the 4th largest provider of Official Development Assistance (ODA) to India after Japan, the European Union, and Germany.
  • Total USAID disbursement to India since 2001: $2.8 billion .
  • Highest aid in recent years:
    • 2022: $228 million
    • 2023: $175 million
    • 2024: $151 million (as of December 19)
USAID

Trump Administration's Executive Order on Foreign Aid

  • January 20, 2025: Executive Order 'Reevaluating and Realigning United States Foreign Aid' issued.
  • Aims to end foreign aid and disband USAID to cut U.S. government spending.
  • India will lose critical USAID-funded projects, affecting key sectors.

Impact on India and Developing Nations

  • Health Programs at Risk:
    • Tuberculosis (TB): 'Breaking the Barriers' project in Karnataka, Telangana, Bihar, and Assam (received $7 million in 2022-23).
    • HIV/AIDS Control: Major funding under PEPFAR (President’s Emergency Plan for AIDS Relief) may be discontinued.
  • Strategic and Economic Ramifications:
    • USAID was an integral part of the Indo-Pacific strategy to counter China.
    • O-RAN 5G project (secure Open Radio Access Network) will be affected.

Legal Challenge and Court Ruling

  • February 13: A U.S. federal court stayed the executive order halting foreign aid.
  • March 5: The U.S. Supreme Court (5-4 verdict) upheld the lower court’s decision, rejecting the Trump administration’s appeal.
  • 500 out of 5,800 foreign aid projects were retained, but most were discontinued.