US continues MCC Nepal Compact amid foreign aid review

US continues MCC Nepal Compact amid foreign aid review
Geopolitics
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Jason P. Meeks Deputy Chief of Mission | U.S. Embassy in Nepal

In February 2025, the Secretary of State granted an exception to the ongoing 90-day pause on U.S. foreign assistance, allowing the MCC Nepal Compact to continue its implementation. This decision was made while a broader review of U.S. foreign assistance is underway. The Millennium Challenge Corporation (MCC) and the U.S. Mission in Nepal are actively engaging with stakeholders to support a positive outcome from this review.

The MCC is collaborating closely with Nepal's Ministry of Finance and MCA-Nepal to ensure that all activities under the compact, including any potential new commitments, align with both U.S. and Nepali government priorities. These efforts focus on maintaining transparency, sound governance, effective delivery, and prudent risk management.

The United States reaffirms its commitment to its bilateral relationship with Nepal, emphasizing support for initiatives that enhance prosperity and foster long-term economic resilience for the Nepali people.