US Withholds $25 Million Grant, Halting Core Funding for American University of Afghanistan

The United States has refused a $25 million grant to the American University of Afghanistan, the institution's primary source of financial support. The State Department made the decision this year, citing the university's history of repeated lack of accountability for American taxpayer dollars. This funding cut leaves the university without its largest donor, creating immediate uncertainty for its operations.

The American University of Afghanistan, or AUAF, serves approximately 1,000 students, about 75% of whom are women. Since the Taliban seized the physical campus, students like Laila, a political science major in her mid-twenties, continue their education through an online program. Laila studies in secret from her home, joining lectures with classmates who use aliases and keep their cameras off. She described the situation as one where she only knows her peers' voices.

Laila’s academic journey has been disrupted by political changes. She was at another Kabul university when the Taliban returned to power in August 2021, with only two exams remaining. After the Taliban banned women's education in December 2022, her degree remained unfinished. She later won a scholarship to AUAF to restart her studies, a path she noted was not available to every girl.

Fear is a constant factor for these students. Some peers have received threatening calls and messages, and Laila worries that Taliban authorities might search her phone and discover university emails. She stated that officials have entered her home several times to search family belongings. She said it is always in the back of her mind that her turn could come tomorrow.

The university opened in 2006 with initial funding announced by former US first lady Laura Bush. Bush said the institution would train future leaders, particularly women. Patrick Fine, the former Afghanistan mission director at USAID, recalled that the Bush administration viewed the project as a way to stabilize a young democracy and build goodwill for the interim government. Some critics at the time considered the investment risky or a waste of money.

Financial scrutiny intensified in the 2010s. US inspectors began an investigation into AUAF's finances in 2016. By 2018, they reported that poor accounting made it impossible to determine exactly how aid money was spent. John Sopko, a former US federal inspector who oversaw the probe, told DW he was surprised they were still funding the university.

The State Department said the university is free to identify other funders and partners. However, the US has paid nearly 90% of the bills as of 2018, according to a US report. Fine rejected the State Department's explanation as smear tactics. He acknowledged that earlier audits found the university struggling with USAID rules but said they did not find major fraud. He called the university a worthy investment because it remains one of the few organizations still reaching Afghan women.

For Laila, the news has been crushing. She said she has lost all motivation and hope, wondering each time she prepares for a lecture whether another will follow. She has barely left her room since learning of the cut. She had expected to graduate years ago and study for a master's degree abroad. Now she thinks she may find a way in five or ten years.