US President Donald Trump has criticized Nepal's federalism aid, calling it a "fraud." In a White House press conference, he specifically mentioned two grants: $20 million for fiscal federalism and $19 million for biodiversity conservation in Nepal, which he labeled fraudulent. Following advice from Trump’s aide, Elon Musk, the administration decided to cancel these grants on February 16. Additionally, the Trump administration suspended foreign aid, including the Millennium Challenge Corporation (MCC) project in Nepal, which focuses on infrastructure like roads and electricity transmission lines. The MCC project, valued at $500 million from the US and $197 million from Nepal, had faced political controversy in Nepal, particularly from leftist parties. The suspension is part of Trump's broader policy to reduce foreign aid. The MCC agreement, signed in 2017, has been controversial, with China criticizing the US’s influence in Nepal. This move is seen as a result of the Trump administration's ongoing efforts to cut foreign aid and address the influence of China in the region.
More! USAID fundings suspended/cancelled by President Trump include the following 👇
- US$ 21 million for "voter turnout" in India
- US$ 29 million for "strengthening the political landscape" in Bangladesh