Trump Calls USAID Funding a "Kickback Scheme," BJP Slams Congress Over $21 Million India Grant

Former U.S. President Donald Trump has reignited a heated political debate by calling USAID’s $21 million grant to India for voter turnout efforts in 2012 a “kickback scheme.” His remarks, made during a Republican Governors' meeting, have drawn sharp reactions in India, with the Bharatiya Janata Party (BJP) using the controversy to attack the opposition Congress party. The incident has not only stirred discussions about U.S. foreign aid policies but has also fueled the ongoing political battle between India’s ruling party and its main opposition.

Trump’s Criticism of USAID Funding

During his speech, Trump questioned why U.S. taxpayers’ money had been allocated to India, a country he said has “a lot more money.” He suggested that such grants often involve undisclosed deals, saying, “I would say in many cases, anytime you have no idea what we’re talking about, that means there’s a kickback.” He also took issue with another $29 million grant to Bangladesh, intended to “strengthen the political landscape.”

“What the hell do I care about? We got enough problems,” Trump said, emphasizing that his administration had already terminated such funding. He did not, however, provide any evidence to support his claim that the funds were part of a corruption scheme.

BJP’s Response: Targeting Congress and Rahul Gandhi

In India, Trump’s comments quickly became political ammunition. The BJP, which has long accused opposition leader Rahul Gandhi of aligning with foreign interests, seized the moment. Amit Malviya, the head of BJP’s IT cell, linked the funding to what he called “deep-state assets” working against India’s interests.

“A day after US President Donald Trump spoke about $21 million being sent to India for ‘voter turnout,’ he has reiterated the charge… This money is also used to sustain deep-state assets who work to defend and deflect such revelations,” Malviya posted on social media platform X.

Political analyst Pradeep Bhandari also echoed this claim, demanding an investigation into whether the Congress party or its associates benefited from the funds. “Donald Trump, for the second time, has said $21 million has gone to ‘voter turnout’… called it a ‘kickback scheme.’ An investigation is a must to find out if Rahul Gandhi and the Congress ecosystem were beneficiaries of this kickback scheme!”

Congress Dismisses Allegations, Demands Transparency

The Congress party has strongly denied the BJP’s accusations, calling them politically motivated. Senior leaders have demanded a White Paper on the USAID grants, tracing where the funds went and how they were used. The party has emphasized that in 2012, when the grant was approved, the United Progressive Alliance (UPA) government was in power and followed all legal and diplomatic procedures in receiving foreign aid.

“This is another attempt by the BJP to deflect attention from real issues,” said a Congress spokesperson. “Instead of making baseless allegations, the government should conduct a transparent inquiry and release a detailed report.”

Congress leaders have also pointed out that Trump’s statements were made without evidence and were part of his political rhetoric in an election year. “Trump is known for making controversial statements without backing them up. His claims should be taken with caution,” said a party leader.

The Role of Elon Musk’s DOGE in Defunding USAID Grants

The controversy follows the decision by Trump’s Department of Government Efficiency (DOGE), a body headed by billionaire Elon Musk, to cut USAID funding to India, Nepal, Bangladesh, and several African nations. The move was framed as a cost-cutting measure but has been criticized as part of a broader trend of U.S. disengagement from foreign aid commitments.

Trump’s abrupt defunding of these programs has raised concerns among development agencies and diplomatic circles. Critics argue that such cuts could harm U.S. influence in key regions and reduce support for democracy promotion efforts.

BJP Links USAID Funds to George Soros and “Anti-India” Narratives

Another layer to the controversy is the BJP’s long-standing claim that international funding agencies, including those linked to billionaire philanthropist George Soros, have been working to undermine India’s government. BJP leaders have suggested that USAID funds may have been routed through Soros-backed organizations to create “anti-India narratives.”

The party has accused Soros-funded groups of trying to sway Indian elections, citing reports and campaigns that criticized Prime Minister Narendra Modi’s government ahead of the 2024 Lok Sabha elections. The BJP claims that Trump’s remarks confirm their suspicions that foreign money was used to influence Indian politics.

Implications of Trump’s Statements

Trump’s allegations, whether substantiated or not, have added fuel to an already polarized political environment in India. His remarks have given the BJP fresh material to attack Congress and Rahul Gandhi, while the opposition has used the issue to highlight concerns over transparency in foreign aid.

From a diplomatic perspective, Trump’s comments could create tensions between India and the U.S. While Prime Minister Modi and Trump have shared a good relationship in the past, the issue of foreign funding—particularly related to elections—remains a sensitive subject.

In the broader context, Trump’s stance on foreign aid reflects his “America First” approach, where he has frequently questioned why U.S. taxpayers should fund international development programs. His views on foreign assistance contrast with previous administrations that saw USAID as a strategic tool for promoting democracy and strengthening alliances.

Conclusion

The controversy over USAID’s $21 million grant to India has become a political flashpoint, with Trump’s remarks igniting a fierce battle between the BJP and Congress. While Trump’s claims of a “kickback scheme” remain unproven, they have given the ruling party an opportunity to attack the opposition and revive discussions about foreign influence in Indian politics.

As the debate continues, the focus will likely shift to transparency and accountability in how international aid is used. Whether this issue leads to an official investigation or remains a political talking point will depend on how both parties choose to navigate the controversy. One thing is clear—Trump’s words have once again stirred the pot, leaving Indian politics to grapple with yet another unexpected twist in the ever-evolving narrative of foreign funding and electoral influence.