Musk’s DOGE Cancels $39 Million in US Funding for Nepal

The Elon Musk-led Department of Government Efficiency (DOGE) has canceled $39 million (approximately Rs 5.39 billion) in US funding for Nepal, originally allocated for fiscal federalism and biodiversity conservation.  

DOGE, established by US President Donald Trump through an executive order, aims to modernize federal technology, enhance governmental efficiency, and reduce spending. 

In a post on X, also owned by Musk, DOGE listed various canceled expenditures, stating, “US taxpayer dollars were going to be spent on the following items, all of which have been canceled.”  

 

US taxpayer dollars were going to be spent on the following items, all which have been cancelled:
- $10M for "Mozambique voluntary medical male circumcision"
- $9.7M for UC Berkeley to develop "a cohort of Cambodian youth with enterprise driven skills"
- $2.3M for "strengthening…

— Department of Government Efficiency (@DOGE) February 15, 2025

The canceled funds included $20 million for fiscal federalism and $19 million for biodiversity conservation in Nepal. 

Scrapped allocations also include $486 million for the ‘Consortium for Elections and Political Process Strengthening,’ including $22 million for ‘inclusive and participatory political process’ in Moldova and $21 million for voter turnout in India; $29 million for ‘strengthening the political landscape’ in Bangladesh; and $47 million for ‘improving learning outcomes’ in Asia.  

The Trump administration in January froze all new foreign aid, except for military assistance to Israel and Egypt, leading to the suspension of U.S. Agency for International Development (USAID)-funded projects in Nepal and other countries for three months. 

As Nepal’s largest bilateral donor, the US has provided significant aid through USAID, supporting sectors such as education, health, governance, economic development, and disaster management.  

Subsequently, USAID informed the government that four projects funded under the Development Objective Agreement (DOAG), signed on May 5, 2022, which fall under the category of on-budget and on-treasury assistance disbursed through the consolidated fund, have been suspended for 90 days. 

Issuing a statement on January 26, Mahesh Bhattarai, Spokesperson at the Ministry of Finance, informed that the suspended projects included the USAID Health Direct Financing Project, USAID Agricultural Direct Financing Project, USAID Education Direct Financing Project, and USAID Inclusive Policy Direct Financing Project. “During this 90-day period, all concerned agencies have been instructed not to create any liabilities under these suspended projects from USAID resources,” the statement read.

Musk, a vocal critic of foreign aid, has been a key advocate in the Trump administration’s push to shut down USAID.