Projects under the US-funded Millennium Challenge Corporation (MCC) have been halted for 90 days in line with the decision taken by the Trump administration.

The Ministry of Finance issued a statement on Tuesday confirming the suspension of the MCC projects. The statement issued by the ministry reads that the Government of Nepal received a correspondence from US authorities about the suspension of the funds for the projects on February 14.

The Ministry of Finance stated that all the financial activities related to the MCC have been suspended for 90 days as per the executive order of US President Donald Trump dated January 20, 2025.

The Government of Nepal had signed an agreement with the US authorities on September 14, 2017 to implement the MCC project.

According to the initial agreement, the United States was supposed to provide US$ 500 million to Nepal for construction of cross-border transmission line and upgrading of roads while Nepal would have to contribute US$ 130 million for the project, expecting the total cost of the MCC project to remain at US$ 630 million. But the 'supplemental agreement' over the MCC that was signed last year, demands the government to bear additional cost of US$ 67 million, seeking its total contribution of US$ 197 million for the enforcement of the agreement.

However, all the funds have now been frozen for the time being.

The US government had earlier halted other projects under the USAID as well.