U.S. Cancels $29m Funding For Bangladesh

The United States government has canceled $29 million development fund allocated for a political development program in Bangladesh. This comes after the three-month suspension of USAID programs in the country.

The newly formed Department of Government Efficiency (DOGE) announced the cancellation in a post on X (formerly Twitter) on Sunday. However, it did not specify how the funds were initially intended to be used.

Amid ongoing political transitions and discussions on reforms in Bangladesh, Chief Adviser Muhammad Yunus had sought support from allied nations, including the U.S. It remains unclear what impact the fund cancellation will have on these efforts.

So far, the U.S. Embassy in Dhaka and the Bangladesh government have not issued any official statements regarding the decision.

The suspension of USAID programs last month had an immediate effect on Bangladesh. Richard Aaron, Director of USAID Bangladesh, sent a letter instructing all local development organizations partnered with USAID to cease operations.

The cancellation of development funds was not limited to Bangladesh. Other South Asian countries also affected. 

Additionally, millions of dollars in funding for various programs in Mozambique, Cambodia, South Africa, Liberia, Mali, Serbia, and Egypt have also been cut.

The funding cancellations have sparked debates on social media. A user named Rishi Bagre questioned who or which organizations were receiving funds for voter awareness programs in India.

Some X users criticized the cuts, particularly in health programs. One post highlighted that $10 million intended for Mozambique’s healthcare sector was supposed to support HIV prevention efforts.

DOGE Chief Elon Musk defended the decision, arguing that U.S. taxpayer money should not be spent on solving foreign issues. He claimed that such allocations increase the financial burden on American citizens.

President Donald Trump has publicly supported Musk’s stance, endorsing cost-cutting measures across all government departments.