US aid freeze significantly impacts Tibetan government-in-exile budget

Parliamentarians of the Tibetan government-in-exile are facing challenges as they prepare their budget for 2025-26. The proposed budget is Rs 367.5 crore, but funding from the U.S. government has been frozen. This freeze is part of President Donald Trump's efforts to cut what he calls "wasteful expenditure." The U.S. typically contributes 40% to 50% of the Central Tibetan Administration's (CTA) annual budget. With funding largely reliant on external donors, the halt on U.S. aid will make it tough for the CTA to meet its financial needs. A significant portion of this funding used to come from the U.S. Agency for International Development (USAID), which the Trump administration plans to dissolve. Previously, USAID had launched a five-year program aimed at strengthening Tibetan communities, but that funding is now on hold. CTA president Penpa Tsering highlighted that changes to budget allocations will be required due to the anticipated shortfall. He reported that Rs 244 crore would go towards social services, with other funds reserved for political and administrative costs. Social services cover various essential needs like schooling, healthcare, and support for settlements in India, Nepal, and Bhutan. The chair of the Budget Estimate Committee, Geshe Lharampa Atuk Tseten, mentioned that funds for celebrations honoring the Dalai Lama's 90th birthday might be reviewed as well. Members of the Tibetan community have expressed concern about the impact of the U.S. aid freeze. Tsering Dolma, president of the Tibetan Women's Association, emphasized that this cut will affect many humanitarian activities. Others, like Ugyen Padma Nyingpo from the Regional Tibetan Youth Congress, advocate for self-reliance to prevent similar challenges in the future. While some fear that crucial services could be compromised, experts believe that the situation might stabilize over time. Professor Kanwar Chanderdeep Singh noted that the Tibetan government-in-exile is unlikely to react impulsively, as the U.S. likely wants to maintain its long-term interests. The budget session started on March 17 and is set to conclude on March 31. The Tibetan government-in-exile operates under a voluntary contribution system, as it does not impose taxes. This system encourages Tibetans to support their government through financial contributions based on their income. India also plays a supportive role by contributing about 10% to the Tibetan budget, assisting with grants, infrastructure, and cultural activities. The Tibetan parliament-in-exile, comprising 45 members representing various regions and traditions, meets twice a year to discuss issues and budgetary needs.