The US Millennium Challenge Corporation (MCC) has signaled it will not immediately stop aid programs in Nepal and three other countries. This comes after the US Department of Government Efficiency (DOGE), led by Donald Trump’s ally Elon Musk, ordered the suspension of all MCC operations except in these four nations.
Former Republican President George W. Bush established MCC to reduce global poverty and promote economic growth. However, the Trump administration has prioritized cutting foreign aid, citing misuse of taxpayer money, leading to the shutdown of USAID and now MCC.
During a recent meeting, MCC employees were informed that most programs would halt, and staff numbers would be reduced. "Foreign aid is not a priority for the administration and so MCC's work needs to wind down," Kyeh Kim, a senior MCC official, told staff.
While active projects—such as Nepal’s electricity transmission lines, Mongolia’s wastewater treatment, Senegal’s initiatives, and school construction in Ivory Coast—will continue, all other MCC operations are set to stop.
Nepal’s Finance Ministry spokesperson Shyam Prasad Bhandari stated that no official communication has been received from the US or MCC regarding the shutdown.
Established in 2004 with bipartisan support, MCC has an annual budget of around $900 million. Employees have until April 29 to resign or take voluntary leave, with salaries paid until September.
This follows the Trump administration’s recent closure of USAID, which provided $40 billion in annual aid.
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