USAID’s Funding in India: Foreign Influence in Sovereign Elections?
Recent revelations have shed light on how the United States Agency for International Development (USAID) funneled $21 million to India under the guise of boosting voter turnout.
However, the bigger question emerging from this report is whether this funding was part of a broader attempt at influencing India’s electoral process. Investigation, based on US government data, NGO financial records, and official statements, suggests that these funds were part of a larger pattern of foreign interference.
The newly formed US Department of Government Efficiency (DOGE) has been conducting audits on government agencies to eliminate wasteful spending. On Sunday (16), 2025, DOGE announced that it had identified and cut $486 million in funding meant for various global projects, including $22 million for electoral processes in Moldova and $21 million for voter turnout in India.
The funds were part of the budget allocated to the Consortium for Elections and Political Process Strengthening (CEPPS), an organization that has received a staggering $3.7 billion from USAID since 2008.
Since returning to office in January 2025, Donald Trump has been vocal about corruption within USAID, frequently criticizing the agency for allegedly engaging in “regime change operations.” The revelation of USAID’s funding to India has intensified debates over foreign intervention in sovereign elections.
On Friday (14), 2025, Vice President JD Vance addressed concerns about such interference at the Munich Security Conference, stating that the biggest threat to democracy in Europe and beyond may come from within, rather than from foreign adversaries. He expressed alarm over European courts annulling elections and suggested that U.S. funding for democratic initiatives should be re-evaluated.
According to government records, USAID’s funding was routed through CEPPS, which consists of three major NGOs—the International Foundation for Electoral Systems (IFES), National Democratic Institute (NDI), and International Republican Institute (IRI). These organizations claim to work towards strengthening democratic institutions worldwide. However, a closer look at their activities raises serious concerns.
CEPPS’ 2023 financial statement—which has since been taken offline—details how funds were transferred from USAID to various international NGOs, which then distributed money to local organizations in India and other nations. This pattern mirrors previous instances where USAID-funded entities were accused of political interference in foreign elections.
Investigation found that IFES and NDI were key players in funneling funds into India. One of their known partners is the Asian Network for Free Elections (ANFREL), an NGO actively involved in electoral activities across the Indian subcontinent.
Financial statements from IFES indicate multiple transfers for projects in India, though the specific details of these projects remain unclear. The controversy has reignited discussions over a Memorandum of Understanding (MoU) signed between IFES and the Election Commission of India (ECI) in 2012 during the tenure of Chief Election Commissioner S.Y. Quraishi.
The BJP has accused Quraishi and other officials of enabling foreign interference in India’s electoral system. Amit Malviya, head of the BJP IT cell, linked George Soros—a known supporter of opposition movements worldwide—to this controversy. He claimed that Soros-funded organizations had been influencing India’s electoral process for years.
However, Quraishi has strongly refuted these allegations. In a statement to PTI, he clarified that the MoU signed in 2012 was purely for training purposes and did not involve any financial obligations. He emphasized that no funds were exchanged as part of the agreement, dismissing the claims as malicious misrepresentation.
Adding to the controversy, the National Democratic Institute (NDI) has been found using a distorted map of India on its website, where Kashmir is not depicted as part of India. This has raised alarms about the true intentions of these organizations.
NDI’s board includes former USAID employees, ex-U.S. ambassadors, and individuals with ties to the CIA, further fueling suspicions about their role in India’s democratic process.
Bangkok-based ANFREL, which receives funds from NDI, has also been actively involved in electoral activities across South Asia, including Myanmar, Sri Lanka, Indonesia, Thailand, Afghanistan, Nepal, and Timor Leste. The NGO’s missions in these regions have drawn scrutiny for their involvement in election-related activities.
With mounting evidence of foreign-funded entities playing a role in India’s electoral landscape, Indian authorities now face the challenge of investigating these organizations and their financial transactions.
The USAID funding scandal has raised serious questions about foreign intervention in India’s elections. With the Trump administration cracking down on such expenditures, the cancellation of the $21 million fund is being viewed as a move to curb potential political manipulation abroad.
However, given the long history of foreign-funded NGOs operating in India, authorities must conduct a thorough investigation to determine whether these funds were part of a larger effort to influence India’s democratic process.
