- USAID funding freeze leads to closure of India’s first transgender healthcare clinics.
- Nearly 5,000 individuals affected as healthcare services for the transgender community shut down.
- Elon Musk-led DOGE cancels $21 million USAID grant for India’s voter turnout initiatives.
- US accuses India of benefiting from foreign aid without transparency.
- Political tensions rise as India’s government faces scrutiny over alleged electoral interference.
India’s first three transgender healthcare clinics were shut down in January 2025 after the US Agency for International Development (USAID) halted funding. The closure affected thousands who relied on these clinics for critical healthcare services. The decision came after former US President Donald Trump froze all foreign aid pending a policy review to ensure alignment with his “America First” approach.
The Mitr Clinics, located in Hyderabad, Kalyan, and Pune, were primarily run by transgender doctors, counselors, and healthcare workers. These clinics provided services such as hormone therapy guidance, mental health support, HIV treatment, and general medical care. However, due to the funding freeze, operations ceased, leaving vulnerable individuals without essential medical assistance.
Each clinic required around ₹30 lakh annually to function, employing eight staff members. Organizers are now seeking alternative funding sources, both public and private, to resume operations. A limited waiver from USAID has allowed clinics to continue providing life-saving antiretroviral medication to HIV-positive patients, but most other services remain unavailable.
USAID’s Voter Turnout Funding Controversy in India
A new controversy erupted after Elon Musk-led Department of Government Efficiency (DOGE) canceled a $21 million USAID fund meant to boost voter turnout in India. The Trump administration questioned the fund, claiming it interfered in India’s elections. Officials also suggested it could be part of a larger “kickback scheme,” adding to growing tensions between the two nations.
Reports indicate the funding was originally planned for voter awareness efforts. However, concerns arose over whether US taxpayer money should support such activities in India. Some officials argued that aid to India lacked transparency, with millions allocated without clear oversight. These concerns fueled heated discussions on Capitol Hill about the broader implications of foreign assistance.
Former President Trump strongly opposed the fund, citing fears of foreign involvement in India’s elections. “American tax dollars should not be funding electoral activities in other countries,” Trump stated. His opposition has further strained US-India relations, with both governments now navigating an increasingly complex diplomatic situation.
India’s External Affairs Minister S. Jaishankar addressed the controversy, saying the government is investigating allegations of foreign interference. “We take these reports seriously and will assess the impact of foreign funding in our democratic processes,” Jaishankar stated. Meanwhile, critics argue India benefits from international aid but fails to ensure accountability, fueling political debates within the country.
Impact on India’s Transgender Community
The USAID funding freeze has forced transgender clinics to close, making life even harder for an already marginalized group. In India, transgender individuals struggle to access proper healthcare, and now, without these specialized clinics, their challenges have only grown. Many are left without essential medical services, adding to their daily hardships.
Meanwhile, human rights groups have strongly criticized the Indian government for failing to step in. One activist from a transgender rights group said, “This is a failure of governance. The government must prioritize the health of its citizens instead of relying on foreign funding.” Many believe India should take responsibility instead of depending on international aid to support vulnerable communities.
At the same time, the issue has fueled a larger debate about foreign influence in India’s politics. While international funding plays a role in development, concerns continue to grow over its impact on domestic affairs. With tensions rising between New Delhi and Washington, India now faces mounting pressure to build self-reliant systems and ensure transparency in both healthcare and elections.