US Withholds $25 Million Grant for Afghan University

The United States has refused to release a $25 million grant to the American University of Afghanistan, cutting off the primary financial support for an institution that serves approximately 1,000 students. Roughly three-quarters of the student body is female. The State Department issued the decision on October 23, 2026, citing a history of accountability issues with taxpayer dollars.

The university opened in 2006 with initial funding commitments announced by former First Lady Laura Bush. Bush described the project as a way to train future leaders, with a specific focus on women. Patrick Fine, who served as the Afghanistan mission director at USAID during that period, noted that agency staff viewed the venture as risky. He said the Bush administration saw the university as a method to stabilize the interim government and build goodwill.

Scrutiny of the university's finances began in 2016 when US inspectors launched an investigation. By 2018, inspectors reported that poor accounting made it difficult to trace the exact use of aid money. John Sopko, the former federal inspector who oversaw the probe, told Deutsche Welle that he was surprised the funding continued. The State Department stated that the refusal to release the new grant reflects a repeated lack of accountability for millions in taxpayer dollars.

Fine rejected the State Department's explanation, calling it smear tactics. He acknowledged that earlier audits showed the university struggled with USAID's rules but stated that the reviews did not find major fraud. He described the institution as a worthy investment because it remains one of the few organizations still reaching Afghan women.

The US has long been the largest donor, covering nearly 90% of the university's costs according to a 2018 report. The State Department said the university is free to seek other funders, meaning the end of American support does not automatically stop operations. However, without the $25 million grant, the university's financial future is uncertain.

Students like Laila, a political science major in her mid-twenties, are already feeling the impact. Her name has been changed for safety. She studies through the university's online program from her home in Kabul, using an alias and keeping her camera off during lectures. The Taliban seized the physical campus after returning to power in August 2021. A ban on women's education announced in December 2022 left her previous degree unfinished at another Kabul university. She won a scholarship to AUAF to restart her education.

Laila said she has received threatening calls and messages from peers and worries about officials searching her phone. She has barely left her room since learning of the funding cut. She had expected to graduate and begin a master's degree abroad, but now she anticipates waiting five or ten years for another opportunity.

The State Department confirmed the decision to withhold the funds. Laila said she has lost all motivation and hope. She joins lectures with classmates who use voices she recognizes but faces no one in person. The university continues its online classes while seeking new financial partners.