State Department Withholds $25 Million AUAF Grant

The United States State Department has refused a $25 million grant to the American University of Afghanistan (AUAF), cutting off the primary financial lifeline for the institution. The agency stated that the decision reflects the university's history of repeated lack of accountability for American taxpayer dollars. This move leaves roughly 1,000 students, about three-quarters of whom are women, without their core funding source.

The refusal follows a long review process by US inspectors. In 2016, federal investigators opened an audit into AUAF's finances. By 2018, officials determined that poor accounting practices made it impossible to track exactly how aid money was spent. John Sopko, a former US federal inspector who oversaw the probe, told Deutsche Welle that he was surprised the university was still receiving funding given these findings.

The university was established in 2006 with initial backing from the Bush administration. Former first lady Laura Bush announced the commitment, saying the school would train future leaders, particularly women. Patrick Fine, then Afghanistan mission director at USAID, recalled that many officials viewed the project as risky. He noted that some critics considered it a waste of money, but the administration saw a chance to stabilize a young democracy and build goodwill for the interim government.

Fine rejected the State Department's recent explanation as smear tactics. He acknowledged that earlier audits found the university struggling with USAID's extensive rules but said they did not find major fraud. He described AUAF as a worthy investment because it remains one of the few organizations still reaching Afghan women. The US has long paid most of the bills, covering nearly 90% of costs as of 2018 according to a US report.

The State Department said the university is free to identify other funders and partners. Ending American taxpayer money does not necessarily mean the end of its operations, but the financial outlook has grown uncertain without the $25 million grant. The Taliban have seized the physical campus, forcing students to study in secret through an online program. Laila, a political science student in her mid-twenties, joins lectures from home with classmates who use aliases and keep their cameras off.

Laila, whose name has been changed for safety, said 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. She said each time she prepares for a lecture she wonders whether another will follow. Officials have entered her home several times to search the family's belongings.

The university's future depends on its ability to secure new funding. The State Department has not indicated whether it will reconsider the decision. AUAF has not released a statement regarding the amount of the grant or the specific conditions for future disbursements.