Explained: The controversy over USAID's $21M grant for Indian elections
What's the story
Elon Musk's Department of Government Efficiency (DOGE) has canceled a $21 million grant that was previously allocated to boost voter participation in India. The withdrawal of the US grant comes amid a broader rollback of USAID-funded programs under President Donald Trump's administration. The now-canceled grant was part of a larger $486 million funding package for the Consortium for Elections and Political Process Strengthening (CEPPS), which is composed of non-profit, organizations dedicated to promoting democratic practices and institutions globally.
Political response
Indian political leaders react to grant cancelation
The cancelation of the grant has sparked a political storm in India. Bharatiya Janata Party (BJP) spokesperson Amit Malviya slammed the funding, asking who would benefit from it. He claimed it wouldn't be the ruling party and alleged George Soros's connections with the Congress party. "In 2012, under the leadership of SY Quraishi, the Election Commission signed an MoU with The International Foundation for Electoral Systems—an organization linked to Soros's Open Society Foundation—which is primarily funded by USAID," he said.
Twitter Post
DOGE announces multiple funding cancelation
US taxpayer dollars were going to be spent on the following items, all which have been cancelled:
— Department of Government Efficiency (@DOGE) February 15, 2025
- $10M for "Mozambique voluntary medical male circumcision"
- $9.7M for UC Berkeley to develop "a cohort of Cambodian youth with enterprise driven skills"
- $2.3M for "strengthening…
Funding clarification
Former Election Commissioner refutes claims of US funding
Former Election Commissioner Quraishi has denied allegations that US funding was utilized during his tenure to boost voter turnout in India. He explained that although there was an MOU with the International Foundation for Electoral Systems (IFES), it didn't include any financial transactions. "There was no financing or even promise of finance involved in MoU, forget X or Y amount," he said.
Funding cuts
DOGE's mission and other canceled international initiatives
In line with its mission to eliminate what it considers "wasteful" government spending under the Trump administration, DOGE has scrapped various international initiatives. These include $29 million for political strengthening in Bangladesh, $22 million for "inclusive and participatory political process" in Moldova, and $40 million for a gender equality hub. Per NDTV, the funds were channeled from USAID to CEPPS for "strengthening democracy through partnership," "making democracies resilient," and "strengthening democratic institutions worldwide."
Process
Most funding came from IFES, NDI
These NGOs, in turn, formed partnerships with other organizations and NGOs worldwide and further funneled funding to these nations. Much of India's funding appears to have come from the International Foundation for Electoral Systems (IFES) and the National Democratic Institute (NDI), the report by NDTV stated. The website of IFES shows that it collaborates with another NGO, the Asian Network for Free Elections (ANFREL), which works extensively throughout the Indian subcontinent.