U.S. Suspends $500M Nepal Infrastructure Projects as Trump Halts Foreign Aid

Two key infrastructure projects in Nepal funded by the U.S. have been paused after President Donald Trump suspended foreign development aid. The projects, supported by a $500 million MCC grant, aimed to enhance power trade and road infrastructure. Future progress remains uncertain amid the funding halt.

Two critical infrastructure projects in Nepal, financed by the United States, have been put on hold following President Donald Trump's suspension of all foreign development assistance, according to a government official on Thursday.

The suspension, ordered by Trump for a 90-day period pending review of the impact of such aid, has affected a $500 million grant from the Millennium Challenge Corporation (MCC) intended for power transmission and road improvement in Nepal.

The projects' standstill comes amid past protests over their potential impact on Nepalese sovereignty, with local stakeholders now facing uncertainties about alternative funding options and project execution.