34 programs run in Nepal with American grants have been cancelled. Along with this, US Secretary of State Marco Rubio has announced that this program of 3249 million 29 thousand 516 US dollars (45 billion 43 million rupees according to Wednesday's exchange rate) operated in Nepal under the American Assistance Mission (USAID) has been cancelled.

Tens of billions of dollars will be spent against American interests  Rubio wrote on social media that the program was canceled. He said that the review of foreign aid programs was completed in 6 weeks and 5,200 out of 6,200 programs around the world were cancelled. But it is not clear whether the remaining 1,000 programs will be reviewed or not.  

"Tens of billions of dollars were spent on 5,200 recently canceled deals that did not serve (and, in some cases harmed) America's core national interests," wrote Secretary of State Rubio. The US Congress had already allocated the budget for the 5,200 programs canceled by the Ministry of Foreign Affairs. Rubio says the remaining 1,000 contracts will be monitored more effectively by the State Department. He said that the Congress will be consulted for that. 

MCA Nepal project is being implemented through Millennium Challenge Corporation (MCC) for infrastructure related programs in Nepal. But now this program has been postponed . 

A five-year strategy agreement has been reached between the Ministry of Finance and the American Assistance Mission (USAID) regarding the use of US aid. Most of the grants received in this way are in non-budgetary programs. There are very few US grant programs in Nepal that are included in the budget. 

USAID had last agreed on a five-year strategic partnership with the government of Nepal on May 15, 2022 to grant 659 million US dollars. Of the agreed amount, 71.7 million US dollars (about 10 percent) is to be included in the budget of the Government of Nepal. There was an agreement to spend the remaining 587.3 million US dollars without including it in the budget (off-budget of treasury). USAID spends non-budgetary funds through various organizations. But the Ministry of Finance does not have the exact details. 

USAID mobilizes support in Nepal in two ways, 'on budget on treasury' and 'off budget of treasury'. According to the Ministry of Finance, 48 percent of the 'on-budgetary' subsidy has been used so far. 

US grants are included in the annual budget as part of the government's programs on agriculture, health, education and inclusive policy reforms. 22.5 million US dollars have been allocated for health projects, 20.10 million US dollars for agricultural projects, 25 million US dollars for education and 7 million US dollars for inclusive policy.

The Ministry of Finance has said that 52 percent of the allocated subsidy for that program has yet to be spent. Having decided to stop all types of foreign aid for a three-month review period, the US has officially canceled 84 percent of foreign aid contracts under USAID. 

With Donald Trump starting his second term as president, on January 20 (12 Jan 2081), he issued an executive order to immediately suspend foreign development grants and make a final decision after a 90-day review. Rubio also thanked billionaire Elon Musk's Department of Government Efficiency (DOJ) for implementing historic reforms.

"It was difficult, but necessary," Dodge chief Musk replied to Rubio. The latest move by the Trump administration will affect the programs and beneficiaries under USAID. A report prepared last week by Nicolas Enrich, acting assistant administrator for USAID's global health program, said tens of millions of people would be affected if aid was stopped. The

report states that halting life-saving vaccines, health care and food programs would "increase death and disability, accelerate the global spread of disease, destabilize vulnerable regions, and increase security risks, directly threatening US national security, economic stability, and public health."

Cuts to those programs would deprive one million hungry children of access to food and nutrition each year, according to the Enrich report. It is estimated that 17.9 million people will be infected with malaria and 166,000 of them will die, which is 39 percent more than the current rate.

The incidence of tuberculosis will increase by 28 to 32 percent and 28,000 people will suffer from emerging infectious diseases such as Ebola and Marburg, the report states. The report also claims that millions of people will fall ill from polio infection in a decade and another 200,000 people will be paralyzed due to polio.  Cuts to the

program could also put American citizens at risk because emerging infectious diseases such as avian influenza, Ebola and monkeypox could escalate and spread globally, Enrich said. Earlier, Dodge chief Musk called USAID a 'criminal organization'. USAID is a criminal organization. It's time to die," Musk said.

USAID, founded by American President John F. Kennedy on November 3, 1961, has been working in more than 176 countries. It has been working especially in the fields of global development, humanitarian aid and promotion of democratic governance. The US has been cooperating with the world community for the fulfillment of national security interests through the Ministry of Defense, the Ministry of Foreign Affairs and USAID respectively under the headings of '3D' i.e. Defense, Diplomacy and Development.

According to the United Nations, 42 percent of the humanitarian aid provided in 2024 was provided by USAID. In 2023, USAID provided 68 billion US dollars worth of financial assistance to 176 countries. According to the data of "Foreign Assistance.GOV", 88 percent of this amount is financial assistance and 12 percent is military assistance. Ukraine, Jordan, Israel, Egypt, Ethiopia, Somalia, Nigeria, Congo, Afghanistan and Kenya are the top 10 recipients of USAID grants.