Kathmandu, Jan 28: US President Donald Trump has announced his decision to resign, sending shockwaves across the globe. Trump, who took office in January after his election in November, has left a trail of significant and controversial decisions, particularly in areas of trade, immigration, foreign aid, and diversity policies.

The Trump administration has prioritized deporting millions of undocumented immigrants and introduced an executive order suspending all forms of US foreign subsidies for 90 days. This decision has disrupted aid-dependent countries, including Nepal, and could have far-reaching implications for the global economy.

The United States, a major donor to global development, provided $68 billion in international grants to 176 countries in 2023 alone. In Nepal, four major USAID-funded projects—Health Direct Finance, Agriculture Direct Finance, Education Direct Finance, and Inclusive Policy Direct Finance—have been suspended for three months. Joint Secretary and Finance Ministry Spokesperson Mahesh Bhattarai confirmed that USAID has informed Nepal’s Finance Ministry to halt new obligations under these projects during the suspension period.

However, the suspension does not extend to the Millennium Challenge Corporation (MCC) program, a key initiative for economic development. The MCC, established by the US Congress in 2004, focuses on poverty alleviation and economic growth. Nepal is set to receive $550 million from the MCC for critical projects, including transmission line construction and road improvements.

The MCC agreement, signed in 2017, initially provided $500 million, with an additional $50 million recently approved by the US Congress to address budget shortfalls. Nepal’s government is contributing $195 million to these projects, which must be completed within a specified timeline to avoid forfeiting remaining funds.

Despite Trump’s departure, the immediate impact of his policies and the ongoing aid suspension raises questions about the stability of US commitments to global development and its influence on partner countries.