US Suspends MCC Projects in Nepal Amid Presidential Directive

The U.S. government has officially suspended the Millennium Challenge Corporation (MCC) projects in Nepal for 90 days, as communicated by Nepal's Finance Ministry following an executive order from President Donald Trump. This suspension affects crucial infrastructure projects aimed at improving Nepal's road and electricity transmission systems, which were intended to enhance connectivity and economic opportunities. The suspension comes despite the MCC pact having formally commenced on August 30, 2023, after years of preparation and political challenges. The agreement included a $500 million grant from the U.S. and a $197 million contribution from Nepal, emphasizing the importance of this funding for the nation's development goals. Nepalese officials are currently assessing the implications of this funding freeze, which threatens to delay project timelines and the overall objectives of the MCC initiative. The situation highlights ongoing concerns regarding U.S. foreign aid and its impact on Nepal's infrastructure ambitions.