Elon Musk Accuses USAID of Funding Transgender Hospitals in India | Impact of US Aid Cuts on Healthcare

Elon Musk Alleges US Funds Are Spent on Transgender Hospitals in India

New Delhi: DOGE leader Elon Musk has accused the US government of spending its financial aid on transgender hospitals in India. The United States Agency for International Development (USAID) provides financial assistance to various countries worldwide, supporting several development projects and initiatives.

Trump’s Decision to Halt USAID Funding

In this context, former US President Donald Trump has decided to halt USAID funding, cutting off financial assistance for global development projects. As a result, countries like India that have been receiving US funds will be affected, particularly in healthcare and other welfare programs, leading to potential project shutdowns.

Due to this, several programs, NGO activities, and certain government initiatives in India that relied on American financial aid have been suspended. The withdrawal of USAID funds poses a serious risk to India, which could face significant setbacks.

Musk’s Allegations on USAID Spending in India

Musk has specifically alleged that the USAID funds allocated to India were used to establish transgender hospitals. He claims that American financial aid has been directed toward the creation and operation of healthcare facilities for the third gender in India. Notably, both Trump and Musk have expressed their belief that only two genders exist and do not acknowledge the third gender. This perspective has led Musk to criticize India's use of these funds.

Impact on India's USAID Funding

Following this decision, USAID has instructed the termination of its funded projects in India.

For over 70 years, USAID has played a significant role in India's development. In the current financial year, India was set to receive $140 million from USAID, the same amount it received last year. With the funding cut, India is expected to lose approximately ₹12,000 crore in welfare schemes.

In the 2023-24 fiscal year, USAID allocated:

• $6.8 million for government and civil society programs
• $55 million for healthcare
• $18 million for environmental initiatives
• $7.8 million for social infrastructure

However, this entire allocation has now been frozen. Notably, a major portion of US financial aid to India has historically been used for healthcare initiatives.

USAID’s Role in India’s Healthcare

Since 1990, USAID-funded programs have helped save over 2 million children's lives in India. Reports indicate that the aid has prevented approximately 25,000 pneumonia deaths and 14,000 diarrheal deaths. The funds also played a crucial role in detecting, treating, and preventing tuberculosis, with special grants provided to the Indian government to combat the disease.

Additionally, HIV/AIDS prevention and care programs in India heavily relied on USAID funding. Since 2007, India has witnessed a 32% decline in HIV infections, largely due to US financial aid.

With this funding now suspended, India’s healthcare sector, particularly disease control and welfare initiatives, is expected to face severe setbacks.