President Donald Trump issued an executive order to review US foreign aid, aiming to align it with his "America First" vision and the goals of his new administration. As a result, the US Agency for International Development (USAID) has instructed a pause on all projects they have been supporting in various countries, including India, until further notice.

According to a report by the Times of India, the move has raised worries about large projects, particularly health-related programs where USAID funds have improved technical support for outreach at the grassroots level. The report mentioned that several sectors, including education, gender and climate change, would be impacted. While USAID doesn't have a large presence in India, stopping its operations would cause financial difficulties for many NGOs working in these development areas. "The recipient shall not resume work under this agreement until notification has been received in writing from the Agreement Officer (USAID) that this award suspension has been cancelled," said the USAID authority. According to numerous sources, current awards are subject to a 90-day review process following the instructions. 

"The United States Agency for International Development (USAID) has long strayed from its original mission of responsibly advancing American interests abroad, and it is now abundantly clear that significant portions of USAID funding are not aligned with the core national interests of the United States. As an interim step toward gaining control and better understanding over the agency’s activity, President Donald J. Trump appointed Secretary Marco Rubio as Acting Administrator," the statement of the State Department said.

"Secretary Rubio has also now notified Congress that a review of USAID’s foreign assistance activities is underway with an eye towards potential reorganisation. As we evaluate USAID and ensure it is in alignment with an America First agenda and the efforts of the State Department, we will continue to protect the American people’s interests and ensure their tax dollars are not wasted," it added.

"But the uncertainty is causing panic," a development practitioner under the condition of anonymity told TOI. She also mentioned that additional donations are helping her organisation continue its mission. As of January 2021, the USAID website stated that it supported mother and child health programs in six states, aiming to improve maternal and child healthcare services. The agency was also working on other important projects, such as increasing access to safe drinking water, sanitation, and hygiene in various cities. Additionally, USAID collaborated with states and private organisations to fund programs that prevent gender-based violence and provide protection and support for people with disabilities.

Civil society organisations often struggle with limited funding, as many funding sources worldwide are changing their approach. Harsh Jaitli, CEO of Voluntary Action Network India, which connects 600 civil society organizations, mentioned that the decision by USAID is part of a larger global trend, with several agencies from Sweden, Germany and the UK reducing their aid to countries.