The Indian government has been very kind to have provided shelter and refuge to the Dalai Lama and hundreds of thousands Tibetan refugees since 1959. For over 50 years the Indian government has provided funding, land, diplomatic assistance and other assistances to the Dalai Lama and all Tibetan refugees. This is perhaps the most amazing thing for me as many Indians still live below the poverty line. Perhaps it is out of compassion or perhaps out of rivalry with China. Anyhow, they have done the Tibetans and Buddhism great favors.
From India, the Dalai Lama were able to bring Buddhism directly and via his Lamas to the rest of the world especially the west and ironically with the ban of Dorje Shugden to China as well. He has also written many books and I expect huge amount of royalty income from these books. Also, I expect much sponsorship and donations to given directly or indirectly to to Him. So it is for him to do as he sees fit how to use the money generated and in this case to donate USD1 mil to the Mind & Life Institute is his prerogative.
The Himachal Pradesh government similarly has the right to ask the central government for assistance to provide funds for the security of the Dalai Lama and the Karmapa. Whether the ban on the protector resulted in higher need for security are debatable. After all, leaders needs security anyway.
Sorry, I won't read much into this.