US State Department Cuts $25 Million Grant to American University of Afghanistan

The United States State Department has finalized a decision to end its financial support for the American University of Afghanistan (AUAF). The cut involves a $25 million grant that was previously offered to the institution. This move effectively removes the largest single source of funding for a university that serves as a critical pathway for women's higher education in a country where such opportunities are increasingly rare.

The State Department press office told DW that the decision reflects the university's history of repeated lack of accountability for millions of American taxpayer dollars. The department noted that the university remains free to identify other funders and partners. However, the loss of US aid leaves the institution's financial future uncertain, as the American government has long borne the majority of the costs.

AUAF was established in 2006 with initial backing from the Bush administration. Former First Lady Laura Bush announced the US commitment of millions of dollars to the project, describing it as a way to train future leaders, particularly women. Patrick Fine, who served as the Afghanistan mission director at the US Agency for International Development (USAID) at the time, stated that the administration viewed the university as a chance to stabilize a young democracy and build goodwill for the interim government.

The relationship between the US and AUAF faced scrutiny years after the university opened. In 2016, US inspectors launched an investigation into the university's finances. By 2018, they reported that poor accounting practices made it impossible to determine exactly how aid money was spent. John Sopko, a former US federal inspector who oversaw the probe, expressed surprise that funding continued despite these findings. He told DW that he was surprised they were still funding AUAF.

Fine rejected the State Department's explanation as smear tactics. He acknowledged that earlier audits found the university struggling with USAID's extensive rules but stated that they did not find major fraud. He described the university as a worthy investment because it remains one of the few organizations still reaching Afghan women. A US report from 2018 indicated that the United States provided nearly 90% of the university's funding, making the recent cut a severe financial blow.

The university currently has roughly 1,000 students, about three-quarters of whom are women. Since the Taliban seized the physical campus, the institution operates through an online program. Students study in secret, joining lectures from home with classmates who often use aliases and keep their cameras off. One student, identified only as Laila, said she knows her classmates primarily by their voices.

Laila, who is in her mid-twenties and studies political science and international studies, has been attending AUAF since 2022. She initially enrolled after the Taliban banned women's education in December of that year. She noted that not every girl had the opportunity to secure a scholarship when her degree remained unfinished at a previous university. Her current studies are conducted under constant threat, with reports of peers receiving threatening calls and officials searching homes for university emails.

The loss of the US grant has deeply affected the student body. Laila said she has lost all motivation and hope since learning of the cut. She has barely left her room since the news broke. She had expected to have graduated years ago and to be pursuing a master's degree abroad. Now, she estimates it may take five or ten years for her to find another way to complete her education.

The US is not the only donor supporting AUAF, but it has historically paid most of the bills. The State Department's decision marks the end of a long financial relationship that began in 2006. While the university can seek new partners, the immediate absence of $25 million creates a significant gap in its budget. The institution continues to operate online, providing a degree to women in a system where physical access to education is heavily restricted by the Taliban.