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Veena Reddy in spotlight: Former USAID India chief linked to $21 million voter turnout fund

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News in short:
A political controversy has erupted in India following US President Donald Trump's claim that a $21 million USAID grant aimed at increasing voter turnout in the 2024 Lok Sabha elections was an attempt to influence the election outcome and facilitate a regime change. BJP MP Mahesh Jethmalani alleged that the grant was used to pay voters and that USAID's India mission director, Veena Reddy, was sent to India specifically for this task. He demanded an investigation into the disbursal trail of the funds. The Congress party has called for a white paper on USAID's financial support for institutions in India. Veena Reddy, the first Indian-American to lead USAID in India, served as Mission Director from 2021 to 2024, during which time USAID's funding for projects in India significantly increased.
Veena Reddy in spotlight: Former USAID India chief linked to $21 million voter turnout fund

Hyderabad: A political controversy has erupted in India following US President Donald Trump’s recent remarks about a $21 million grant from USAID aimed at increasing voter turnout in the 2024 Lok Sabha elections. Trump said that the funding was part of an effort to influence the election outcome and hinted at an attempt to facilitate a regime change.

Following Trump’s statement, BJP MP Mahesh Jethmalani took to X, claiming that Veena Reddy, who headed USAID’s India mission from 2021 to 2024, had been sent to India with the specific task of overseeing the voter turnout project. Mahesh Jethmalani pointed out that Veena Reddy returned to the US after the 2024 elections, suggesting her mission was complete.

Mahesh Jethmalani, a lawyer, and BJP MP alleged that the $21 million was earmarked for “voter turnout” in India, which he claimed was a euphemism for paying voters to influence the election. He also raised concerns about the timing of Reddy’s tenure and her involvement with US Ambassador Eric Garcetti in executing USAID’s objectives.

In his post, Mahesh Jethmalani argued, “It’s unfortunate that investigating agencies here did not question Veena Reddy about who received the funds and how they were used for voter turnout operations.” He further called on Indian agencies to trace the disbursal trail of the $21 million, stating that those responsible for subverting India’s sovereignty should face legal consequences.

Mahesh Jethmalani also criticized the Biden administration, claiming the $21 million grant was part of an effort to “get someone else elected,” or facilitate a regime change. He called on President Trump to clarify who handled and received the funds, and whether the grant was disbursed according to USAID’s stated objectives.

Trump’s comments have fueled the debate, with the BJP alleging that USAID’s funding was aimed at influencing the 2024 elections, while the Congress party has demanded that the Indian government release a white paper on USAID’s financial support for institutions in India over the years.

Who is Veena Reddy: Background 

Veena Reddy, an Andhra Pradesh-born American diplomat, served as USAID’s Mission Director for India and Bhutan from August 2021 to July 2024. She was the first Indian-American to lead USAID in India. Under her leadership, USAID’s funding for projects in India increased significantly from $94.3 million in 2021 to $228 million in 2024.

Before heading USAID’s mission in India, Veena Reddy served as Mission Director in Cambodia and Deputy Mission Director in Haiti. She also held positions at USAID in Pakistan and in regional roles across Central Asia and Central America. Prior to her federal service, Veena Reddy worked as a corporate attorney in New York, London, and Los Angeles.

Veena Reddy holds a J.D. from Columbia University School of Law and both an M.A. and B.A. from the University of Chicago.

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