The US government has cancelled $39 million in aid initially allocated for two key projects in Nepal, namely fiscal federalism and biodiversity conservation. The funds included $20 million for federalism efforts and $19 million for conservation initiatives, as announced by the US Department of Government Efficiency on X (formerly Twitter).
This decision impacts various countries, including Cambodia, Bangladesh, Serbia, and India, with millions of dollars being withdrawn from projects related to governance, democracy, and social development. The cancellation stems from a previous executive order issued by US President Donald Trump, which paused all foreign assistance funded by or through the State Department and USAID for review.
Additionally, approximately 300 NGOs, consultancies, and nonprofits directly receiving aid from USAID will be affected by the suspension of funds for at least three months.
