Germany warns US over grant scheme seen as election interference

Germany's chancellor has warned the United States against interfering in German elections after Washington announced a new grant scheme for Europe-focused groups. Friedrich Merz said he did not want the US government or institutions close to it to interfere in German state elections due in September. His comments came after the US State Department unveiled funding of up to $3m for European charities, think tanks and individuals.

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The funding is intended for projects that seek to address national sovereignty, migration, censorship and lawfare challenges. The announcement says applicants should work in line with a shared political philosophy, law and what it calls a common western civilizational heritage. The wording has raised concern in Germany and among former US officials, who say the scheme could be used to support far-right groups and potentially political parties in Europe.

Merz said at a press conference on Wednesday that Germany does not interfere in American elections and expects the same in return. He also noted that it is illegal to finance political parties in Germany from abroad. The grant announcement has been criticised for its broad language, including references to "individuals" and a "governmental institution", without further detail on who would qualify.

The dispute comes amid wider concern in Europe about US efforts to shape political debate on the continent. The grant scheme follows months of discussion inside the State Department about repurposing government funds to support causes aligned with Maga-style politics. Those themes include migration, censorship and lawfare, which have become central to debates over sovereignty and political identity in several European countries.

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The issue is significant because it touches on election integrity, foreign influence and the limits of political funding across borders. Germany has strict rules against foreign financing of parties, and Merz's remarks suggest Berlin sees the new US initiative as potentially crossing that line. The timing is also sensitive because state elections are due in September, increasing scrutiny of any outside political activity.

What remains unclear is how the grant scheme will be implemented, who will be eligible, and whether any money will actually reach political actors in Europe. It is also not clear whether the initiative will face legal or diplomatic challenges in Germany or elsewhere in the European Union. For now, the row has sharpened tensions between Berlin and Washington over the boundaries of democratic interference.

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