US Temporarily Suspends MCC Projects in Nepal for 90 Days
The US government has temporarily suspended its Millennium Challenge Corporation (MCC) projects in Nepal for 90 days. The suspension was communicate the Nepalese Ministry of Finance (MoF) via an email sent on February 14, 2025. The suspension was done under an executive order that had been signed by US President Donald Trump on January 20, 2025. The MCC, which is an American government-financed project, had been implementing a number of infrastructure projects in Nepal, including the construction of high-voltage transmission lines and road maintenance. The agreement on these projects was reached between Nepal and the US in September 2017. Finance Ministry has validated suspension, adding that payment on MCC-project financed projects has been suspended for the time being. Suspension is also extended to other USAID-financed projects in sectors like health, agriculture, education, and policy making. These delays are crippling efforts to enhance health, food security, and education in Nepal. Additionally, the US government has pulled out $39 million of aid to Nepal’s federalism and biodiversity conservation programs, and aid to around 300 NGOs has been halted. While the MoF has made it clear that the MCC projects will not be affected in the long run, this move has raised eyebrows about the future of the program in Nepal.
