The United States has decided to shut down the Millennium Challenge Corporation (MCC), a grant assistance project. This decision follows the directive of the Department of Government Efficiency (DOGE), led by American billionaire Elon Musk. The grant, which had been provided to uplift the economic standards of developing countries, will now be discontinued.
According to Reuters, MCC employees were informed of the shutdown on Tuesday via email. There is a possibility that employees will be placed on administrative leave starting May 5.
Established in 2004 by former President George W. Bush, the decision to close MCC comes under the Trump administration’s cost-cutting policy. If the MCC project is terminated, the work under its programs in Nepal will also come to a halt.
As per the recording of an employee meeting and email obtained by Reuters, all MCC programs will be shut down and staff numbers reduced. MCC senior official Kyeh Kim said in the meeting, “Foreign aid is not a priority for this administration, so the MCC must cease its operations.”
She also mentioned that DOGE officials had already visited the MCC office last week and initiated discussions with the leadership. However, MCC has not yet provided any comment to Reuters.
Earlier, the Trump administration had also dissolved USAID, which distributed around $40 billion annually in aid. MCC had partnered with developing countries to invest in infrastructure such as electricity supply and road construction.
The organization operated on an annual budget of approximately $900 million. According to an MCC employee, all activities except for some construction projects have been halted. Active projects include Mongolia’s wastewater treatment plant, power transmission projects in Senegal and Nepal, and school construction in Ivory Coast.
“This aid program is a U.S. interest-driven method of infrastructure-focused development,” the employee said on condition of anonymity. Around 300 MCC employees have been offered options of voluntary resignation or deferred resignation by April 29. Under this plan, they will continue receiving salaries until September. Otherwise, they will be placed on administrative leave.
Kyeh Kim told employees, “Think seriously about what is best for you and your family. That is more important than your commitment to this institution.” She warned, “The future of the organization looks very bleak.”
