The ripple effects of Donald Trump’s 2024 presidential victory in the US are beginning to show across the globe, and India is no exception. Among the most immediate consequences of his administration’s aggressive foreign aid cuts is the closure of Hyderabad’s pioneering transgender clinic, Mitr Clinic.
The move follows Trump’s 90-day freeze on United States Agency for International Development (USAID) funding, shortly after taking office on 20 January, a decision that put thousands of projects worldwide in jeopardy.
Recently, a US senator openly criticised the clinic’s operations, questioning why American taxpayer money was being used to support transgender healthcare initiatives abroad.
The remarks echo Trump’s long-held stance on gender, reinforcing his administration’s push for policies that recognise only two genders. With USAID’s future uncertain and a potential merger with the State Department on the horizon, India’s healthcare and social development programs — many reliant on US funding — face an increasingly precarious future.
India’s first trandgender clinic
Launched on 29 January 2021, Mitr Clinic marked history as India’s first-ever transgender clinic. Opening in Narayanguda, it received support from USAID among other organisations. It marked a positive step in making healthcare accessible for the transgender community.
In fact, it paved the way for the free transgender clinic which opened at Hyderabad’s Osmania General Hospital the same year.
Subsequently, in 2024, the Telangana government opened 33 transgender clinics across the state by the name of Maithri Clinics. This step further enhanced healthcare accessibility. Yet, on 24 January 2025, five days ahead of its 4th anniversary, the clinic shut down.
“We had to close up due to the problems in the USAID system,” sources at the clinic revealed to South First. They added that this was a crucial time for them, with an uncertain future. “We are just glad that this came after the inception of the Maithri clinics, ensuring that the community has access,” they stated.
Meanwhile, sources said that the state government has no plans to fund Mitr Clinic since it has been running Maithri Clinics.
They are not alone. Many other organisations are hanging over similar uncertainties, including Community-Led Monitoring (CLM). It works in the healthcare sector, operating out of Hyderabad and a few other districts of Telangana. Similar initiatives like the iJal Stations and the Learn, Play, Grow.
What is USAID?
The USAID was established in 1961 by then-President John F Kennedy to consolidate various foreign assistance programs, aiming to counter Soviet influence during the Cold War. Over the decades, USAID has been pivotal in delivering humanitarian aid, promoting economic development, and supporting health initiatives worldwide.
In the fiscal year 2023, USAID disbursed approximately $42 billion across 157 countries. Major recipients included Ukraine and Jordan. However, the agency’s operations have recently undergone significant changes.
In early 2025, President Donald Trump, with support from Elon Musk, head of the Department of Government Efficiency (DOGE), initiated a 90-day freeze on foreign aid. This action led to the suspension of thousands of programs globally and placed numerous USAID officials on leave.
The administration is considering merging USAID into the State Department to align aid with the “America First” policy.
In the Indian context, USAID has played a significant role in various developmental projects. Collaborations have spanned sectors such as health, education, and agriculture, contributing to India’s progress in these areas. The recent freeze and potential restructuring of USAID raise concerns about the future of such partnerships and the continuation of ongoing projects in India.
As per the Foreign Assistance Dashboard, India received close to $127 million from USAID in 2023. The South First
