US Freezes $25 Million Grant After Decade-Long Audit Issues Plague Afghan University

The United States has refused to release a $25 million grant to the American University of Afghanistan, cutting off the primary source of funding for the institution. The State Department announced the decision this week, citing persistent financial management issues that have plagued the university for nearly a decade. This move removes the largest pillar of financial support for a school that has become a critical lifeline for Afghan women seeking higher education.

The university currently serves approximately 1,000 students, with three-quarters of the enrollment consisting of women. Before the Taliban returned to power in August 2021, the institution operated on a physical campus in Kabul. Since the 2022 ban on women's education, students have continued their studies through an online program. Many attend lectures from home, often using aliases and keeping their cameras off to maintain a low profile.

Laila, a political science student in her mid-twenties, learned of the funding cut via email late at night. She describes the university as one of the last places where women can still pursue a degree. Her academic journey has been interrupted twice; first when the Taliban took over in 2021, leaving her with two exams unfinished, and again when the funding uncertainty hit. She noted that not every woman had the opportunity to secure a scholarship to restart their studies.

The financial relationship between the US and the university dates back to 2006. Former First Lady Laura Bush helped launch the project, which was designed to train future leaders, particularly women. USAID mission director Patrick Fine recalled that the idea was initially viewed as risky by many officials. The administration saw it as a way to stabilize the interim government and build goodwill. However, the partnership later drew scrutiny from federal auditors.

In 2016, US inspectors opened an investigation into the university's finances. By 2018, auditors reported that poor accounting practices made it difficult to track how aid money was spent. John Sopko, a former federal inspector who oversaw the probe, expressed surprise that funding continued after those findings. The State Department recently told Deutsche Welle that the decision to withhold the grant reflects a history of repeated lack of accountability for 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's strict rules but stated they did not find major fraud. Fine described the university as a worthy investment because it remains one of the few organizations still reaching Afghan women. The US had provided nearly 90% of the university's funding as of 2018, according to a federal report.

The State Department said the university is free to identify other funders and partners. While this does not necessarily end the institution's operations, the loss of the $25 million grant creates significant uncertainty for its future. The university is not the only donor to the institution, but the American contribution has long dominated its budget. The decision leaves the school relying on smaller, less certain sources of income.

For students like Laila, the financial cut has had an immediate emotional impact. She said she has lost all motivation and hope, and she has barely left her room since learning of the decision. She wonders if each lecture will be the last. Laila had planned to graduate years ago and pursue a master's degree abroad. Now, she estimates it may take five or ten years to find another way forward.