Former US President Donald Trump claimed that USAID, the US agency responsible for managing foreign aid, interfered in India's elections. He pointed out that USAID allocated 182 crore rupees (about $24 million) to increase voter turnout in India, while India spends a massive 16 lakh crore rupees (about $2 trillion) on its general elections. Trump questioned whether such a relatively small amount of money could significantly impact election results.
Growing online interest surrounds Veena Reddy, the former USAID India director, amid allegations that $21 million was funnelled to boost voter turnout.
BJP MP Mahesh Jethmalani’s call for an investigation and President Donald Trump’s explosive remark—“I guess they (USAID) were trying to get someone else elected. We have got to tell the Indian government”—set off a storm of controversy, prompting questions over the true intent behind the funding.
Funding Mechanism and Channeling
The $21 million was part of a larger $486 million grant by the Department of Government Efficiency (DOGE) and was channelled through the Consortium for Elections and Political Process Strengthening (CEPPS). Formed in 1995, CEPPS includes the International Foundation for Electoral Systems (IFES), the International Republican Institute (IRI), and the National Democratic Institute (NDI).
However, the precise method of disbursement remains unclear, as both the USAID and CEPPS websites offer limited details. For example, while IFES has a long record of promoting democratic governance worldwide, it currently reports no active projects in India, and neither IRI nor NDI lists ongoing programs in the country.
Who is Veena Reddy?
Reddy, an Andhra Pradesh-born American diplomat, joined USAID’s India office on August 5, 2021, and announced her return to the US on July 17, 2024—over a month after the Lok Sabha election results were declared.
During her tenure, net funds disbursements for Indian projects peaked at over $228 million (Rs 1982 crore) in 2022—the highest since 2001. Her leadership also saw investments in sectors ranging from Basic Health to HIV/AIDS prevention and environmental protection. According to the US Embassy, Reddy was the first Indian American to lead USAID in India and Bhutan, having also held key positions in missions in Cambodia and Haiti.
Controversy and Reactions
The controversy intensified when President Trump, speaking at a Miami summit, questioned the necessity of spending $21 million on voter turnout. “Why do we need to spend $21 million on voter turnout in India? I guess they (the Biden administration) were trying to get somebody else elected. We have got to tell the Indian government. This is a total breakthrough,” he said, suggesting that the funds might be part of an effort by the “American deep state” to meddle in India’s elections.
(With inputs from Subham Tiwari)