American University of Afghanistan: State Department Withholds $25 Million Grant

The United States has stopped funding the American University of Afghanistan, a move that threatens the academic future of hundreds of women in a country where the Taliban ban female students from higher education.

The State Department confirmed it will not release a $25 million grant to the university. This single payment represented nearly 90% of the institution's budget as of 2018. The university has operated since 2006 and currently serves about 1,000 students, with women making up approximately three-quarters of the enrollment.

Laila, a political science student in her mid-twenties, learned of the decision via email late one night. She uses a pseudonym for safety because the Taliban have seized the physical campus. She attends online lectures from her home, relying on voice recognition since classmates keep their cameras off. "I just know their voices," she said.

Laila’s academic journey began at a different university in Kabul when the Taliban returned to power in August 2021. She had two exams left to finish her degree when the new government took control. After a formal ban on women’s education in December 2022, her degree remained incomplete. She later secured a scholarship to the American University of Afghanistan and restarted her studies. "Not every girl got that opportunity," she said.

The financial cut adds pressure to a community already living under constant threat. Laila reports that officials have entered her home multiple times to search for evidence of her education. Some classmates have received threatening calls. She worries that a simple phone check could reveal university emails. "It's always in the back of my head that maybe tomorrow it's my turn," she said.

Washington officials cited long-standing accounting issues as the reason for the withdrawal. A 2016 investigation by US inspectors found poor record-keeping that made it difficult to trace aid spending. John Sopko, a former federal inspector who oversaw the probe, noted the persistence of the funding. "I was surprised they were still funding AUAF," he said. The State Department described the university's history as a "repeated lack of accountability for millions of American taxpayer dollars."

Patrick Fine, who directed the US mission in Afghanistan, disputed that characterization. He called the recent comments "smear tactics" and argued that earlier audits did not reveal major fraud. He maintained the university remains a "worthy investment" because it continues to reach Afghan women in a restrictive environment.

The State Department said the university is free to seek other partners and funders. However, the loss of the $25 million grant creates an immediate financial gap. Laila said the news has drained her motivation. She has stayed in her room since hearing the news and now wonders if she will graduate in five or ten years.