Kathmandu: The United States has withdrawn $39 million (Rs 5.39 billion) in aid previously allocated for Nepal’s fiscal federalism and biodiversity conservation programs. The funding cuts are part of a broader move to scale back foreign assistance across multiple sectors.
The Department of Government Efficiency (DOGE), led by billionaire entrepreneur Elon Musk, announced the decision via a post on X on Sunday. Nepal was set to receive $20 million for fiscal federalism and $19 million for biodiversity conservation, but both allocations have now been scrapped.
The cuts come amid a wider reassessment of US-funded initiatives abroad, affecting several other programs, including $40 million for gender equality initiatives and $47 million aimed at improving learning outcomes in Asia. Countries such as Bangladesh, Serbia, and Cambodia are also impacted by the decision.
The move reflects a shift in US foreign aid policy, with officials emphasizing the need to prioritize domestic spending. The impact of the funding withdrawal on Nepal’s programs remains to be seen.