Kathmandu: The United States government has put all US-funded Millennium Challenge Corporation (MCC) projects in Nepal on hold for 90 days, citing an executive order issued by President Donald Trump on January 20, 2025.
The decision was conveyed through an email from the Washington DC-based MCC to Nepal’s Ministry of Finance on February 14. The ministry made the communication public on Monday. As a result, all payments related to the MCC have been suspended until further notice.
Nepal signed the MCC agreement with the US on September 14, 2017, to fund infrastructure and energy projects. The temporary suspension raises concerns about the project’s implementation and its impact on Nepal’s development initiatives.
Officials from Nepal’s Finance Ministry have yet to comment on the reasons behind the US decision or its potential implications for ongoing projects.