US aid freeze hits health, development projects in Nepal DW 02/27/2025
Briefly

Nepal recently suspended various US-funded development projects, such as those financed by USAID, following President Trump's order for a 90-day freeze on foreign aid. The decision also affects a significant $500 million grant from the Millennium Challenge Corporation (MCC), aimed at improving the country’s infrastructure. The situation has reopened debates regarding national sovereignty and economic benefits related to foreign aid, while also intensifying geopolitical tensions between the US and China. Mixed reactions have emerged from the Nepalese public, with supporters and opponents of the MCC expressing contrasting views on the aid freeze.
"The Himalayan nation's Finance Ministry stated that USAID-financed projects in education, health, and agriculture have been affected due to the aid freeze imposed by Trump."
"The MCC project has exacerbated geopolitical tensions, with the US and China engaged in a contentious dialogue over aid influence in Nepal, particularly regarding infrastructure projects."
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