US Funding: American University of Afghanistan Loses $25 Million

The United States has stopped funding the American University of Afghanistan, a move that cuts off the primary financial source for roughly 1,000 students. The State Department confirmed the decision, citing a history of poor accountability with American taxpayer money. For the students, the news arrived as a shock that threatens one of the last remaining paths to higher education for Afghan women.

Laila, a political science student in her mid-twenties, learned of the cut through an email on her phone. She studies under a pseudonym for safety, attending online lectures with classmates who keep their cameras off. She said she knows her peers only by their voices. The university is about three-quarters women, and the Taliban currently control the physical campus, forcing students to continue their education in secret from home.

Laila’s journey to the university began when the Taliban returned to power in August 2021. She was at another institution in Kabul with two exams left when the takeover happened. After the Taliban banned women from secondary and higher education in December 2022, her degree remained unfinished. She later secured a scholarship to the American University of Afghanistan and restarted her studies.

Daily life for these students is marked by fear. Laila said some classmates have received threatening calls and messages. She worries that Taliban officials might search her phone and discover university emails. She noted that officials have entered her home multiple times to inspect family belongings. She said it is always in the back of her mind that she could be the next target.

The university opened in 2006 with support from the Bush administration. Laura Bush, then first lady, announced the commitment, saying the school would train future leaders, particularly women. Patrick Fine, the former Afghanistan mission director at USAID, recalled that many within the agency viewed the project as risky. He said the administration saw it as a way to stabilize a new democracy and build goodwill.

Washington later scrutinized the funding. US inspectors opened a financial probe in 2016. By 2018, they reported that poor accounting made it difficult to track how aid money was spent. John Sopko, a former federal inspector who oversaw the investigation, told Deutsche Welle he was surprised the university was still receiving funds.

The State Department said this year that the decision reflects the university’s repeated lack of accountability. Fine rejected that explanation as smear tactics. He acknowledged that audits found the university struggled with USAID rules but said they did not uncover major fraud. He called the institution a worthy investment because it remains one of the few organizations reaching Afghan women.

The United States has long paid nearly 90% of the university’s bills, according to a 2018 report. The State Department said the university is free to find other funders and partners. However, the loss of the $25 million grant leaves the institution’s future uncertain. Other donors exist, but they have not filled the gap left by American support.

Laila said the news crushed her motivation and hope. She has barely left her room since learning of the cut. She had expected to graduate years ago and begin a master’s degree abroad. Now, she thinks she may wait five or ten years to find another way forward.