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American University of Afghanistan Loses Core US Funding Over Decade-Long Audit Concerns

The halt in funding, driven by audit concerns, leaves the institution that educates roughly 1,000 students, three-quarters of them women, without its primary financial support.

By Petra Murphy ·

Illustration for: American University of Afghanistan Loses Core US Funding Over Decade-Long Audit Concerns
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The United States has blocked a $25 million grant to the American University of Afghanistan (AUAF), removing the primary financial source for the institution. The State Department cited the university’s history of accountability issues regarding American taxpayer dollars. This decision halts the flow of funds that have long supported the university’s operations and its student body.

AUAF serves approximately 1,000 students, with women comprising about three-quarters of the enrollment. Since the Taliban took control of the campus, the university operates an online program. Students participate in lectures from home, often using aliases and keeping their cameras off to maintain privacy. The shift to remote learning allows women to continue their studies in a country where higher education for females has faced repeated restrictions since 2021.

The funding dispute traces back to 2016, when US inspectors began investigating the university’s finances. By 2018, auditors reported that poor accounting practices made it difficult to track the use of aid money. John Sopko, a former federal inspector who oversaw the probe, noted his surprise that funding continued despite these findings. The State Department’s recent decision aligns with these earlier concerns about financial management.

Patrick Fine, the former USAID Afghanistan mission director, contested the characterization of the university’s financial mismanagement. He described the State Department’s reasoning as smear tactics, pointing out that earlier audits did not reveal major fraud. Fine acknowledged that AUAF struggled with USAID’s complex rules but maintained that the university remained a worthy investment for reaching Afghan women. The university was established in 2006 with support from the Bush administration, which viewed it as a tool for stabilizing the interim government.

While the US has not been the sole donor, a 2018 report indicated that American funds covered nearly 90% of the university's costs. The State Department stated that AUAF is free to seek other partners and funders. The university now faces a financial gap as it looks to replace the withheld grant with alternative sources to sustain its educational programs.

For students, the funding cut raises immediate questions about the longevity of their online programs. Laila, a political science student in her mid-twenties, said the news has diminished her motivation. She has received threatening messages and worries about phone searches by Taliban authorities. The uncertainty surrounding the university’s finances now overlaps with the personal risks her classmates and she face while studying in secret.

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