U.S. Suspends All Foreign Aid: Global and Nepali Projects at Risk

January 26, 2025
U.S. Suspends All Foreign Aid Global and Nepali Projects at Risk

The United States has suspended all forms of foreign aid. This decision comes under President Donald Trump’s “America First” policy, as a review of foreign policy is underway, resulting in a temporary suspension of foreign assistance for 90 days.

According to the U.S. State Department, a decision will be made after the 90-day review period on whether to resume or completely halt aid.

After being sworn in on January 20, Trump issued an executive order to reassess foreign assistance and directed subordinate agencies to suspend foreign development grants.

This move could lead to the shutdown of numerous health, education, and development-related projects supported by the U.S. worldwide. These are sectors where the U.S. has been the largest global spender.

Ukraine is also expected to be impacted. The country, which is at war with Russia, had received billions of dollars in aid from former President Joe Biden. In 2023 alone, the U.S. provided Ukraine with over $17.2 billion in assistance.

However, international media reports indicate that U.S. military aid to Israel and Egypt, as well as support for food programs, has not been halted.

According to AFP, the U.S. has also ceased providing health-related aid to impoverished countries. This step could disrupt vaccine campaigns and similar initiatives. The U.S. State Department has reportedly already informed its embassies through an official letter.

What about Nepal?

According to government data, the United States is the largest provider of foreign development assistance globally. In 2023, it distributed $68 billion worth of international aid.

The suspension of U.S. aid is expected to impact Nepal as well. The United States has been providing assistance to Nepal in agriculture, good governance, disaster management, infrastructure development, education, health, and sanitation. Most of this aid is channeled through USAID.

U.S.-funded projects under the Millennium Challenge Corporation (MCC), which focus on road and electricity infrastructure in Nepal, could also be affected.

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