At the Conservative Political Action Conference (CPAC) in Washington, U.S. President Donald Trump criticized the United States Agency for International Development (USAID) for allegedly allocating funds to influence India’s electoral process. He questioned why American taxpayers’ money was being sent to India, a country he claimed already imposes high tariffs on American goods and does not require financial assistance for elections. Citing an unverified figure of $18 million, Trump suggested that the U.S. should focus on improving its own electoral system with paper ballots and voter ID instead of funding elections abroad. A prior report from the Department of Government Efficiency (DOGE), led by Elon Musk, indicated that $21 million had been allocated for “voter turnout” in India.

India’s External Affairs Minister S. Jaishankar responded, stating that the government was investigating the matter. He emphasized that USAID had been permitted to operate in India in good faith but acknowledged concerns about allegations of improper activities. Meanwhile, the opposition Congress party demanded a white paper on all foreign aid received by India and called for legal action against those spreading what it termed as “baseless allegations” of foreign interference. Congress spokesperson Pawan Khera argued that the funds in question were directed toward Bangladesh, not India, and that fact-checkers had disproven claims made by BJP leaders and government officials.

In contrast, BJP leader Ajay Alok dismissed Congress’s defense, insisting that the Modi government had significantly reduced foreign aid inflows. He claimed that between 2004 and 2014, India received $2,119 million in foreign aid, whereas the amount had dropped to just $1.5 million from 2014 to 2025. Alok further alleged that certain political movements, including the Bharat Jodo Yatra, were financed by foreign funds and suggested that the U.S. government had identified recipients of these funds.

As neither the Indian nor the Bangladeshi government has issued a formal statement, the controversy is expected to continue, potentially straining U.S.-India diplomatic relations ahead of crucial elections in both nations.