Kathmandu: A U.S. congressional leader has called for the immediate suspension of a USAID grant to an international NGO over alleged links to Pakistan-based terrorist groups, raising broader questions about oversight of U.S. foreign aid.

Congressman McCaul Demands Suspension of Grant
U.S. Representative Michael T. McCaul (R-TX), Chairman of the House Foreign Affairs Committee, has urged the United States Agency for International Development (USAID) to immediately halt a $110,000 grant to Helping Hand for Relief and Development (HHRD). In a letter to USAID Administrator Samantha Power dated January 24, 2023, McCaul cited serious concerns over the organization’s alleged ties to Lashkar-e-Taiba, the terrorist group blamed for the 2008 Mumbai attacks that killed more than 170 people.

McCaul criticized the agency’s delay in responding to credible allegations and labeled USAID’s conduct as “gross negligence.” He also urged a comprehensive investigation involving the intelligence community, federal law enforcement, and the State Department’s Counterterrorism Bureau.

Allegations of Terrorist Links Resurface
Despite longstanding concerns, USAID awarded the grant to HHRD in October 2021 under its Ocean Freight Reimbursement Program. The organization has been under scrutiny since 2019, when U.S. lawmakers first raised red flags about its possible connections to extremist networks and terror financiers.

HHRD, originally founded by Pakistani expatriates, is reported to operate in multiple regions, including Nepal. Allegations suggest the group maintains close coordination with Pakistani authorities, particularly through its office in Maharajgunj, Kathmandu, located near the Pakistani embassy.

Key Individuals Under Spotlight
Syed Khalid Mohsin, HHRD's former ASEAN Regional Director and Country Director in Nepal, has been named in reports alleging ties to Lashkar-e-Taiba. His father, Syed Abid Shah, was a senior Jamaat-e-Islami leader in Pakistan. Irfan Pokharel, also known as Jiba Prasad Pokharel, who manages HHRD programs in Nepal, has similarly been accused of promoting radical ideology linked to Lashkar-e-Taiba.

In one of the more serious allegations, HHRD has been linked—without public evidence—to the death of Nepali national Sudip Neupane in a terrorist attack in Pahalgam, Jammu and Kashmir, further intensifying scrutiny.

Continued Funding Fuels Outrage
Despite mounting concerns, USAID reportedly allocated an additional $73,000 to HHRD in 2023. According to India Today and the Middle East Forum, funding continued even as USAID’s Office of the Inspector General launched a formal investigation.

The development has sparked bipartisan concern in the U.S. Congress. Senator Marco Rubio (R-FL) stated in March 2024 that “under no circumstances should taxpayer money go to organizations sympathetic to terrorist groups.”

USAID Faces Internal and External Pressure
The controversy comes amid heightened calls for reform of USAID. Conservative critics have accused the agency of operating as part of the “deep state,” and proposals have circulated to restructure or even dissolve it, with some of its functions potentially shifting to the State Department.

A January 11, 2023 briefing revealed that USAID staff became aware of HHRD’s alleged extremist ties only a week before, despite congressional inquiries beginning in May 2022. McCaul has since demanded all documentation related to HHRD’s grant approval and vetting processes, with a deadline of February 7, 2023.

Implications for U.S. Foreign Aid Policy
The HHRD case underscores broader concerns about the effectiveness of U.S. vetting mechanisms for foreign aid recipients. With operations in geopolitically sensitive regions such as South Asia, NGOs are under increasing scrutiny to ensure they uphold humanitarian principles and are free from extremist affiliations.

Observers note that the outcome of the ongoing investigation—and the government’s response—could lead to significant reforms in how U.S. foreign aid is managed, particularly in conflict-prone or politically complex regions.

Outlook Remains Unclear
As of April 30, 2025, USAID has not released the findings of its internal review, leaving the case unresolved. Calls for transparency, improved oversight, and a rebalancing of humanitarian objectives with national security priorities continue to grow.

Whether HHRD will face further legal or financial consequences depends on the outcome of ongoing investigations and potential inter-agency reviews in the months ahead.