US Aid Shift: $25M Grant Blocked for Afghan University

The American University of Afghanistan lost its primary source of financial support when the US State Department refused a $25 million grant. This funding had covered nearly 90% of the institution's costs as of 2018. The decision leaves the university, which serves approximately 1,000 students, without its main financial backer.

The university opened in 2006 with support from the US government, including a public commitment by former First Lady Laura Bush. She described the project as a way to train future leaders, with a specific focus on women. Patrick Fine, who served as the Afghanistan mission director at USAID during that era, recalled that many within the agency viewed the initiative as risky. Some critics argued the money was a waste, while the Bush administration saw it as a method to stabilize the new democracy and build goodwill.

Questions about the university's finances began surfacing in 2016 when US inspectors launched an investigation into its spending. By 2018, investigators reported that poor accounting practices made it impossible to track exactly how aid money was utilized. John Sopko, a former federal inspector who oversaw the probe, expressed surprise that funding continued. He stated, "I was surprised they were still funding AUAF."

The State Department press office told Deutsche Welle that the recent decision reflected a "history of repeated lack of accountability for millions of American taxpayer dollars." Fine disputed this characterization, calling the explanation "smear tactics." He noted that while earlier audits found the university struggled with USAID rules, they did not uncover major fraud. He described the institution as a "worthy investment" because it remains one of the few organizations actively reaching Afghan women.

For students like Laila, the funding cut disrupts a fragile routine. She is in her mid-twenties and studies political science and international studies. Her name is used by permission for safety. After the Taliban returned to power in August 2021, she was left with two exams at her previous university. A ban on women's education announced in December 2022 left her degree unfinished. She eventually won a scholarship to AUAF and restarted her studies.

Laila now attends classes through an online program because the Taliban have seized the physical campus. She joins lectures from home, using an alias and keeping her camera off. She said she knows her classmates only by their voices. Fear is a constant presence for her and her peers. Some have received threatening calls, and she worries officials will search her phone for university emails. She reported that officials have entered her home several times to inspect family belongings. She said, "It's always in the back of my head that maybe tomorrow it's my turn."

The State Department said the university is free to identify other funders and partners, meaning US withdrawal does not automatically end operations. However, the loss of the $25 million grant creates uncertainty for the institution's future. Laila said the news crushed her motivation and hope. She has barely left her room since learning of the cut and wonders if she will ever complete her degree, which she expected to finish years ago.