US Cuts $25 Million Grant to Afghan University, Leaving 750 Women Without Funding

The United States has denied a $25 million grant to the American University of Afghanistan, a cut that leaves roughly 750 female students without their primary financial lifeline. The State Department announced the decision this week, citing the institution's history of poor accountability for American taxpayer dollars. The university, which opened in 2006, relies on this single source for nearly 90 percent of its operating budget. Without the funds, the institution’s long-term survival is in doubt, according to officials.

For Laila, a political science student in her mid-twenties, the news arrived via an email notification at 3 a.m. She now studies online from her home, using an alias and keeping her camera off to avoid detection by the Taliban. The university has approximately 1,000 students, with women making up three-quarters of the enrollment. Since the Taliban returned to power in August 2021, Laila has had to restart her degree after her previous program was interrupted by a ban on women's education. She secured a scholarship to continue her studies at the American University of Afghanistan, a path not available to many of her peers.

The financial relationship between the US and the university dates back to the Bush administration. Laura Bush, then first lady, announced the initial commitment of millions of dollars to train future leaders. Patrick Fine, the former Afghanistan mission director at USAID, described the project as a risky but worthy investment designed to stabilize a young democracy. However, the arrangement drew scrutiny in 2016 when US inspectors opened a financial probe. By 2018, auditors reported that poor accounting practices made it difficult to track exactly how the aid money was spent. John Sopko, a former federal inspector who oversaw the investigation, expressed surprise that funding had continued despite these findings.

The State Department argued that the decision reflects a repeated lack of accountability. Fine disputed this characterization, calling it smear tactics. He noted that earlier audits found the university struggled with USAID rules but did not uncover major fraud. He maintained that the university remains a worthy investment because it is one of the few organizations still reaching Afghan women. The department stated that the university is free to find other partners, but the loss of the primary donor creates significant uncertainty.

Fear defines the daily lives of students like Laila. She has received threatening calls and messages from peers, and Taliban authorities have entered her home multiple times to search family belongings. She worries that officials could find university emails on her phone. The financial cut has deepened her anxiety. She has barely left her room since learning of the decision. She had planned to graduate years ago and pursue a master’s degree abroad. Now, she estimates she may need five or ten more years to complete her education.