U.S. Teases with Millions, Leaves Nepal High and Dry!

In a surprising move that has reverberated across the international community, the U.S. Department of Government Efficiency (DOGE) has decided to halt several foreign aid programs, slicing hundreds of millions from the budget originally earmarked for global development. This abrupt cancellation impacts a diverse range of initiatives from biodiversity preservation in Nepal to gender equality projects worldwide.

The cuts include significant amounts such as $20 million designated for enhancing Nepal’s fiscal federalism and another $19 million aimed at conserving its rich biodiversity. Beyond these, the U.S. has withdrawn $40 million from a project focused on gender equality and women’s empowerment, alongside a $32 million contribution to the Prague Civil Society Centre.

Perhaps most notably, a whopping $486 million that was part of the Consortium for Elections and Political Process Strengthening has also been axed. This large fund included specific allocations like $22 million for Moldova and $21 million for India. The sweep of these cancellations stretches further, affecting projects in countries including Bangladesh, Cambodia, Liberia, Mali, Serbia, and Kosovo.

This series of cancellations follows directly from an executive order issued by President Donald Trump, which imposed a 90-day freeze on all foreign aid upon his assumption of office. The impact of this decision is profound, particularly for ongoing U.S. assistance programs in Nepal which have faced immediate disruption.

Nepal’s financial strategy with the U.S. has been significantly hampered by these cuts. The country, which had a strategic partnership with the United States Agency for International Development (USAID) worth $659 million, signed as recently as May 2022, finds itself in a precarious position. Following the executive order, USAID has abruptly notified not only Nepal’s Ministry of Finance but also numerous NGOs and nonprofit organizations that all funded programs are to cease operations immediately.

In 2023 alone, the U.S. extended a helping hand globally with $68 billion in aid distributed across 176 countries, placing Nepal 16th among recipients. The sudden halt of these grants underlines critical concerns about the sustainability of Nepal’s development projects which heavily rely on external funding.

As the world watches, the ramifications of these cancellations stretch far beyond the immediate fiscal implications. They pose serious questions about the future of international aid, global cooperation, and the stability of many development projects worldwide. The decision underscores a stark reevaluation of priorities under the Trump administration, signaling potentially long-term shifts in U.S. foreign policy and its commitment to global developmental goals.