 "US mission in India 'reviewing' foreign aid after Trump's executive order")
The US mission in India has reportedly started a “review” of its existing grants after the Donald Trump administration's executive order freezing new funding for almost all US foreign assistance.
According to a report in The Indian Express, the US mission has started a reivew to ensure that their existing grants comply with executive orders. "We are carrying out a review to ensure that our existing grants comply with executive orders," a US Embassy spokesperson told the publication.
The sweeping order threatens a quick halt to countless projects globally aiding health, education, development, job training and other efforts by the United States, including in India.
Why Donald Trump wants to stop foreign aid?
According to a report published in The Financial Times, US Secretary of State Marco Rubio has ordered an immediate halt to work on virtually all existing foreign aid programmes pending a review. The order was sent in a cable to US embassies worldwide, a copy of which was obtained by The Financial Times.
The only two exceptions in the order include allowing humanitarian food programmes and military aid to Israel and Egypt.
Earlier, Donald Trump had pleged to eliminate aid programs that, according to him, are not to be in US interests.
How it can impact India?
The United States Agency for International Development (USAID) collaborates with India to address various development challenges through a range of programs and initiatives. These efforts are organised under three strategic priorities - advancing climate action, promoting inclusive growth, and strengthening partnerships.
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Under advancing climate action, the Partnership to Advance Clean Energy (PACE), launched in 2012, supports India's transition to clean energy by providing technical assistance and advancing renewable energy solutions. Other efforts include biodiversity conservation and addressing pollution to enhance resilience against climate change.
For promoting inclusive growth, USAID's Support for Water and Sanitation in India (SUWASI) (2021-2026) strengthens water service delivery and promotes open defecation-free communities. The Women + Water Alliance (2017-2023) empowered women through clean water initiatives. The Advancing Nutrition program (2021-2023) addressed malnutrition among disadvantaged families in Assam, linking nutrition-sensitive agricultural practices with health outcomes. USAID also invests in improving health systems, education, and economic opportunities for marginalised groups.
Under strengthening partnerships, USAID fosters collaboration with the private sector and regional stakeholders. The Advancing the US-India Partnership Platform enhances program effectiveness through integrated learning and adaptive strategies. Additionally, USAID promotes trade, connectivity, and technological innovation across South Asia, leveraging finance for impactful development.
“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.