Kathmandu, Feb 18: After USAID assistance suspension, the Millennium Challenge Corporation (MCC) has suspended payments for activities under Nepal’s MCC Compact, according to an email received by the Ministry of Finance on February 14.
The funding suspension follows a 90-day foreign aid freeze imposed through an executive order issued by U.S. President Donald Trump on January 20, 2025.
Nepal’s MCC Compact, signed on September 14, 2017, includes construction of electricity transmission lines, substations, and road infrastructure projects. With the halt in U.S. assistance, there is now uncertainty surrounding ongoing construction projects under MCC Compact.
Nepal was set to receive $500 million in grants through the MCC agreement, which faced years of debate, discussion, and opposition before being ratified by Nepal’s Parliament.
Following Trump’s election victory, not only has MCC funding been halted, but all USAID assistance worldwide has also been frozen. #nepal #MCC #MCA
