KABUL, AFGHANISTAN – The Special Inspector General for Afghanistan Reconstruction (SIGAR) has stated that the Taliban have no legal claim to billions of dollars allocated for Afghanistan, citing the group’s lack of international recognition and existing sanctions against them.
In its latest quarterly report, SIGAR highlighted that the U.S. transferred $3.5 billion in Afghan central bank assets to the Swiss-based Fund for the Afghan People in 2022, a figure that has since grown to nearly $4 billion.
Established to stabilize Afghanistan’s economy, the fund has yet to make any disbursements benefiting Afghan citizens. Meanwhile, the Taliban’s Economy Ministry has demanded the release of over $9 billion in frozen reserves, criticizing U.S. policies as ineffective.
“The Taliban want these funds even though they have no legal right to them since they are not recognized by the United States as the government of Afghanistan, are on the U.S. Specially Designated Global Terrorist list, and are under U.S. and U.N. sanctions,” the report said.
The report comes as the Trump administration implements a sweeping freeze on foreign aid, raising concerns about the future of humanitarian assistance in Afghanistan.
The Trump administration’s aid freeze has further exacerbated the crisis, affecting critical programs, including healthcare, landmine removal, and food security. While emergency food aid remains exempt, many humanitarian organizations remain uncertain about the scope of exemptions and the future of their operations.
The World Food Programme (WFP) warns that international aid cuts, combined with the U.S. funding freeze, have left it able to assist only half of those in need. As a result, millions of Afghans are surviving on minimal nutrition, such as bread and tea. More than six million face acute food insecurity, often receiving only one or two meals per day.
The freeze has also disrupted the Special Immigrant Visa (SIV) program, which facilitates the relocation of Afghans who worked with U.S. forces. While applications are still being processed, resettlement agencies have halted key support services, including flights to the U.S., leaving many SIV holders stranded in Afghanistan.
As the situation unfolds, aid organizations and federal agencies are struggling to navigate the abrupt suspension, seeking clarity on guidelines and potential exemptions to sustain their critical work in Afghanistan and beyond.