Congress hits out at BJP as FinMin report says USAID funds not for 'voter turnout'

The already raging political controversy over the US Agency for International Development or USAID’s alleged role in influencing Indian elections has now taken a new turn with the latest annual report of the Union finance ministry disclosing that the agency funded seven projects worth $750 million in 2023-24.

"Currently, seven projects worth a total budget of USD 750 million (approx.) are being implemented by USAID in partnership with Government of India," as per the ministry's annual report for 2023-24.

Congress MP and general-secretary (communications) Jairam Ramesh put out an X post saying, "None other than the Union Finance Ministry has thoroughly exposed the lies of the PM and his jhoot brigade, including his dapper External Affairs Minister.

"As stated in the Finance Ministry's annual report for 2023-24, USAID is currently implementing seven projects in collaboration with the Government of India, with a combined budget of approximately $750 million. Not a single of these projects has to do with voter turnout. ALL of them are with and through the Union Government."

The political controversy erupted in India earlier this month after the Elon Musk-led DOGE (department of government efficiency) claimed that it had cancelled a $21 million grant to India to boost "voter turnout".

US President Donald Trump also repeatedly claimed that USAID under the previous administration led by Joe Biden had allocated $21 million in funding to India for 'voter turnout', later changing the figure to $18 million, though neither Musk nor Trump provided evidence to support the claim.

Meanwhile, the Indian Express published a report claiming that the $21 million had actually gone to Bangladesh, which suggested that the geographically challenged US President Donald Trump had mixed up Dhaka and Delhi. The BJP's IT cell chief Amit Malviya took the lead in amplifying Trump's claim, branding the IE report as fake.

Trump, too, continued to double down on his claim, though his statement later changed to say the funds had gone to 'my friend PM Modi' instead of the unspecified 'they' he had mentioned initially.

The Congress on Sunday, 23 February accused the BJP of indulging in "anti-national work" by spreading "fake news from America" and asserted that Prime Minister Narendra Modi and external affairs minister S. Jaishankar would also have to answer as to why the government was silent when Trump and Musk were "insulting" India repeatedly.

In an X post on Sunday, Ramesh said, "BJP is a procession of liars and illiterates. The news about USD 21 million, on which the BJP and their bootlickers were jumping on, turned out to be fake. The USD 21 million in 2022 was not for 'voter turnout' in India, but for Bangladesh."

In a related development, the Trump administration on Sunday said it was placing all but a fraction of staffers at USAID on leave worldwide and eliminating at least 1,600 US-based jobs.

The move was one of the biggest steps yet toward what Trump and cost-cutting ally Musk say is their goal of shutting down the six-decade-old aid and development agency in a broader campaign to slash the size of the federal government.

The move comes after a federal judge on Friday allowed the administration to move forward with its plan to pull thousands of USAID staffers off the job in the US and around the world. US district judge Carl Nichols rejected pleas in a lawsuit from employees to keep temporarily blocking the government's plan.

“As of 11:59 p.m. EST on Sunday, February 23, 2025, all USAID direct hire personnel, with the exception of designated personnel responsible for mission-critical functions, core leadership and/or specially designated programs, will be placed on administrative leave globally,” according to the notices sent to USAID workers that were viewed by the Associated Press.

At the same time, the agency said in the notices to staffers that it was beginning a reduction in force that would eliminate 2,000 US-based jobs. A version of the notice posted later on USAID's website put the number of positions to be eliminated lower, at 1,600.

The administration gave no explanation for the discrepancy. USAID and the state department did not immediately respond to messages seeking comment. The cuts mean many of the Washington-based staffers who are being placed on leave would soon have their positions eliminated.

The Trump appointee running USAID, deputy administrator Pete Marocco, has indicated he plans to keep about 600 mostly US-based staffers on the job in the meantime, in part to arrange travel for USAID staffers and families abroad.

The move escalates a month-long push to dismantle the agency, which has included closing its headquarters in Washington and shutting down thousands of aid and development programmes worldwide following a freeze on all foreign assistance. A judge later temporarily blocked the funding freeze. Trump and Musk contend that USAID's work is wasteful and furthers a liberal agenda.

Lawsuits by government workers' unions, USAID contractors and others say the administration lacks the constitutional authority to eliminate an independent agency or congressionally funded programmes without lawmakers' approval.

The blanket nature of the notification letters to USAID contractors, excluding the names or positions of those receiving them, could make it difficult for the dismissed workers to get unemployment benefits, workers noted.

A different judge in a second lawsuit tied to USAID said this past week that the administration had kept withholding foreign aid despite his order temporarily blocking the funding freeze and must restore the funding to programmes worldwide.

The separate ruling from Nichols, a Trump appointee, on Friday also cleared the way for the administration to start the clock on a planned 30-day deadline for USAID staffers and their families to return home if they want their travel paid for by the government.

The judge said he was satisfied by Trump administration assurances that workers abroad would be allowed to stay in their jobs while on leave beyond the 30 days even if they chose to remain overseas.

Foreign staffers fear that continued problems with funding flows and the gutting of most of the headquarters staff will make a safe and orderly return difficult, especially those with children in school, houses to sell and ill family members.

USAID's notice Sunday said it was “committed to keeping its overseas personnel safe” and pledged not to cut off USAID staffers abroad from agency systems and other support.

Bilateral development assistance from the US to India started in 1951 and is mainly administered through USAID. Since its commencement, USAID has provided economic assistance of over $17 billion to India in various sectors for over 555 projects.

For the financial year 2023-24, an obligation of a total of $97 million (about Rs 825 crore) has been made by USAID under the seven projects, the finance ministry report said.

The department of economic affairs under the finance ministry, which is the nodal department for bilateral funding arrangements, has also shared details of projects funded in 2023-24 in the report.

During the year, no funding was made to enhance voter turnout but to projects related to agriculture & food security programme; water, sanitation and hygiene (WASH); renewable energy; disaster management and health, the report says.

Besides, it said, funds were committed for the Sustainable Forests and Climate Adaptation Program and Energy Efficiency Technology Commercialization and Innovation Project.

External affairs minister S. Jaishankar on Saturday, 22 February said the information put out by the Trump administration was "concerning" and that the government was looking into it.

USAID was allowed in India "in good faith, to do good faith activities", and suggestions were being made out of America that "there are activities which are in bad faith," Jaishankar had said.

With agency inputs