US State Department freezes $25 million aid to Afghan university over audit flaws

The United States has denied a $25 million grant to the American University of Afghanistan (AUAF), citing a history of financial accountability issues. This decision removes the primary source of funding for the institution, which serves approximately 1,000 students. About three-quarters of the student body are women, many of whom study through an online program to avoid detection by the Taliban.

Laila, a political science and international studies student in her mid-twenties, learned of the funding cut via email. Her name has been changed for safety. She studies from home using aliases and keeping her camera off during lectures. "I just know their voices," she said. Laila began at AUAF after winning a scholarship following the Taliban's December 2022 ban on women's education, which had left her previous degree unfinished after the group returned to power in August 2021.

The university, founded in 2006, received initial support from the Bush administration. Former First Lady Laura Bush stated the funding would train "future leaders," particularly women. Patrick Fine, the former Afghanistan mission director at USAID, noted that while some viewed the project as risky, the administration saw it as a way to stabilize the young democracy. USAID is now defunct.

Scrutiny of the university's finances began in 2016 when US inspectors opened an investigation. By 2018, inspectors concluded that poor accounting made it difficult to track how aid money was spent. John Sopko, a former US federal inspector who oversaw the probe, told DW, "I was surprised they were still funding AUAF." The State Department press office stated the refusal reflects the university's "history of repeated lack of accountability for millions of American taxpayer dollars."

Patrick Fine rejected the State Department's explanation as "smear tactics." He acknowledged that earlier audits found the university struggled with USAID rules but said they "didn't find major fraud." He described the university as "a worthy investment" because it remains one of the few organizations reaching Afghan women. A 2018 US report indicated the United States covered nearly 90% of the university's costs.

The State Department said the university is "free to identify other funders and partners." The refusal of the $25 million grant leaves the institution's financial future uncertain. Laila said the news has crushed her motivation. "I have lost all my motivation and hope," she said. She has barely left her room since learning of the cut and now estimates she may find a path to completion in five or ten years, rather than graduating and pursuing a master's degree abroad.

The university continues to operate its online program for students studying in secret. Laila worries that Taliban authorities could search her phone and find university emails. She said officials have entered her home several times to search family belongings. "It's always in the back of my head that maybe tomorrow it's my turn," she said.