If prostitutes are already being treated then how will an extra $40m from the US prevent their treatment? The only stipulation is that the extra $ cannot be channelled in that direction.
As for the reason for the strings attached to the aid: perhaps the US Aid organizations have more visibility of social change Activity hiding under the AIDS umbrella and wants to force them into the open.
"... They ne'er cared for us
yet: suffer us to famish, and their store-houses
crammed with grain; make edicts for usury, to
support usurers; repeal daily any wholesome act
established against the rich, and provide more
piercing statutes daily, to chain up and restrain
the poor. If the wars eat us not up, they will; and
there's all the love they bear us."
-- Shakespeare: Coriolanus, Act 1, scene 1