After dismantling the US Agency for International Development (USAID), the Trump administration is now reportedly preparing to shut down the Millennium Challenge Corporation (MCC), according to multiple international media outlets.

Reuters, citing a leaked recording of a recent staff meeting and an internal email, reported that the Department of Government Efficiency (DOGE)—led by Elon Musk—has ordered an end to MCC operations. Staff were informed in a meeting on Wednesday, April 23, that all programs would be terminated and staffing drastically reduced.

Established by the US Congress in 2004, the MCC manages an annual budget of approximately $900 million and works with developing nations on infrastructure projects such as power transmission lines and road upgrades to support economic growth, the reports said.

Nepal, one of MCC’s key partner countries, has long received significant U.S. support through both USAID and the MCC, with all assistance previously provided in the form of grants. However, upon returning to office on January 20, President Trump launched a sweeping 90-day review of all foreign aid programs, pausing both USAID and MCC operations globally.

According to Reuters, while the MCC has not responded to its formal query, a staff member—speaking on condition of anonymity—confirmed that all agency activities were being suspended, except for a handful of active construction projects, including a wastewater treatment facility in Mongolia, electrical grid projects in Nepal and Senegal, and school construction in Ivory Coast.

“This is very much a business- and infrastructure-focused way of doing development. It's very much in America's interest,” the employee told Reuters.

The news of MCC’s potential shutdown was first reported by Politico, which obtained an email informing MCC’s roughly 300 employees that they must decide by April 29 whether to accept early retirement, opt for deferred resignation with salary through September, or face administrative leave.

In Nepal, the MCC Compact was signed in September 2017, with the United States pledging $500 million in grants to support the construction of a cross-border electricity transmission line and the upgrade of key segments of the East-West Highway. Nepal was to contribute an additional $130 million, bringing the total cost to $630 million. A supplementary agreement signed last year raised Nepal’s required contribution to $197 million.

The MCC-funded projects in Nepal had been progressing until February, when all work was paused in accordance with the US administration's aid review. On February 14, the Government of Nepal received official notice from US authorities regarding the suspension, according to the Ministry of Finance.

However, in a partial reversal, the US agreed last month to allow certain MCC-related activities to continue. The Millennium Challenge Account (MCA) Nepal—the body responsible for implementing the Compact—announced that some procurement processes and essential office functions were cleared to resume under limited scope.

Nepal’s House of Representatives ratified the MCC Compact on February 27, 2022, after prolonged debate and controversy. The ratification was accompanied by an “interpretative declaration” clarifying Nepal’s sovereign rights under the agreement.

Click here to read our reports on MCC.

February 3: The friendly football matches between Nepal and Mauritius held recently is expected to become a milestone for promoting business and tourism between the two countries.