At least four major projects in Nepal have been affected by a recent executive order signed by US President Donald Trump that halted all foreign aid provided by USAID and the US State Department for a 90-day review. This includes USAID Health, Agricultural, Education, and Inclusive Policy Direct Financing Projects, worth tens of millions in aid combined. The suspension affects more than 300 NGOs and nonprofits receiving US aid in Nepal, and some key sectors, such as health, could be affected, including planned surveys and disease monitoring.
But the Millennium Challenge Corporation (MCC), a separate initiative program, is unaffected for now. The review is intended to make certain that foreign aid furthers a US “America First” policy, one that advances the interests of American taxpayers. Experts believe the pause could be a blow to several development programs ongoing in Nepal and will be a loss to Nepal’s financial and technical assistance.