German Chancellor Friedrich Merz on Wednesday criticized a Trump administration initiative offering nearly $5 million in grants to promote free speech, religious liberty and other democratic principles across Europe, arguing the U.S. should not become involved in Germany's political affairs.

The State Department announced the program this week, saying it is designed to strengthen "democratic resilience, rule of law, freedom of speech and freedom of the press, and the defense of human rights in Europe."

According to the funding notice, applicants should address "national sovereignty, migration, censorship, and lawfare challenges in line with shared political philosophy, law, and our common Western civilizational heritage."

Speaking in Berlin, Merz said Germany has consistently avoided interfering in U.S. elections and expects the same standard from Washington.

"We do not interfere in American elections; we've always stuck to that," Merz said, according to Politico.

"Conversely, I don't want the American government or government-affiliated institutions to interfere in German elections," he added.

Merz also stressed that German law prohibits foreign financial support for domestic political parties.

"It is illegal to finance political parties in Germany from abroad," the conservative leader said. "And I assume that our friends around the world, in particular, will also abide by these legal rules that we have established in Germany."

The grant program, first reported by the Financial Times, could award up to $3 million per recipient. Although political parties are not specifically listed as eligible applicants, the announcement has drawn attention because of its focus on issues including migration, censorship, national sovereignty and "lawfare."

Newsmax reached out to the State Department for comment on Merz's criticism but did not receive an immediate response.

The initiative aligns with the Trump administration's broader push to challenge what it views as increasing restrictions on free speech in Europe, particularly regulations affecting online content and major U.S. technology companies.

The funding notice argues that "Supra-national institutions and governments are using state power to undermine fundamental principles of democratic self-government through overbroad and vague hate-speech laws and online content regulations that police and punish speech while suppressing political participation."

The announcement comes as Germany's Alternative for Germany (AfD) party continues to climb in national polls ahead of key regional elections later this year.

U.S. officials have previously denied that meetings with European conservative and nationalist leaders constitute interference in European politics.