Sat Feb 08 02:50:00 UTC 2025: ## US Temporarily Halts USAID Funding in India, Raising Concerns for NGOs
**NEW DELHI** – The Trump administration’s new foreign aid policies are causing ripples across the globe, with India potentially facing the brunt of restrictions imposed by the United States Agency for International Development (USAID). The agency has temporarily suspended all its aid projects in India, creating uncertainty for numerous non-governmental organizations (NGOs) reliant on US funding for social and developmental initiatives.
According to a report in the Times of India, the health sector is expected to be most severely affected. USAID has historically provided crucial technical support to grassroots healthcare programs. Projects focusing on education, gender equality, and climate change are also at risk.
While USAID’s footprint in India is relatively limited, the global cutbacks in foreign aid are already impacting Indian NGOs. USAID has instructed its partner organizations to minimize spending until written approval is received, with a 90-day review period currently in place. This temporary suspension, while not permanent, has created anxiety among organizations involved in development work.
An NGO worker, speaking on condition of anonymity, noted that while their organization has alternative funding sources, many others are heavily reliant on USAID support and could face significant challenges. USAID’s website reveals that, until January 2021, the agency supported maternal and child health programs in six Indian states, along with projects related to clean water, sanitation, and hygiene, as well as initiatives combating gender-based violence and empowering people with disabilities.
Experts point out that foreign funding in India was already declining, particularly due to stricter regulations under the Foreign Contribution Regulation Act (FCRA). Harsh Jaitely, CEO of Voluntary Action Network India, highlighted that the crisis extends beyond USAID, with several other countries like Sweden, Germany, and the UK also reducing aid. However, smaller NGOs may be less affected, as USAID primarily funds larger projects like tuberculosis eradication and water and sanitation programs.
The move is seen as part of a broader shift in US global strategy, subjecting development aid to stricter review. The temporary halt to funding in India underscores a wider trend of reduced foreign aid from the US under the Trump administration.
First Piper 