In January 2025, India's pioneering transgender clinics, known as Mitr Clinics, were compelled to cease operations following a funding freeze by the U.S. Agency for International Development (USAID). This abrupt halt disrupted essential healthcare services for nearly 5,000 individuals across the country. The Mitr Clinics, launched in 2021 in Hyderabad, Kalyan, and Pune, were a groundbreaking initiative aimed at providing specialized healthcare for India's transgender community. In January 2025, U.S. President Donald Trump ordered a 90-day pause on all foreign aid to assess its alignment with the "America First" policy. This directive led USAID to issue a stop-work order, effectively halting funding to various international projects, including the Mitr Clinics.

Funded by USAID, these clinics offered a safe and inclusive space for individuals seeking gender-affirming care. One of their primary services was hormone therapy guidance, helping transgender individuals navigate their medical transition. Additionally, they provided mental health counseling to support those facing psychological distress, discrimination, and societal stigma. By addressing these critical aspects, the clinics played a crucial role in improving the well-being of the transgender population. Beyond transition-related healthcare, the Mitr Clinics also offered essential services such as HIV and STI testing, counseling, and treatment, catering to a community that often faces higher health risks due to social and economic marginalization. They provided legal aid, assisting individuals with documentation changes and advocating for transgender rights.

Moreover, the clinics ensured access to general medical care, offering routine check-ups and treatments that many transgender individuals struggle to receive in mainstream healthcare settings due to bias or lack of understanding. Their closure due to funding cuts has left thousands without access to these vital services, raising concerns about the future of transgender healthcare in India. The immediate consequence was the closure of these clinics, leaving thousands without access to specialized healthcare services. While a waiver from USAID permitted the continuation of certain life-saving activities, such as providing antiretroviral medication for HIV-infected individuals, the comprehensive services previously offered were discontinued.

The closure sparked significant reactions both domestically and internationally. Elon Musk, a known ally of President Trump, commented on the funding allocation, stating, "That's what American tax dollars were funding," reflecting the administration's scrutiny of foreign aid expenditures. Clinic organizers are actively seeking alternative funding sources, both public and private, to resume operations. The abrupt shutdown underscores the vulnerability of essential healthcare services that rely heavily on foreign aid and highlights the pressing need for sustainable, locally-supported funding mechanisms to ensure uninterrupted care for marginalized communities.