With Donald Trump taking power, the US has temporarily stopped all foreign aid. US Secretary of State Marco Rubio has instructed subordinate agencies to suspend the current foreign aid and new grant distribution. This will affect everything from development aid to military subsidies.

US President Trump signed an executive order on foreign aid re-evaluation last Monday. The order mentions the suspension of foreign development grants for 90 days. After the President's order, the Ministry of Foreign Affairs has issued instructions to stop the grant to the subordinate agencies. "Until the review and approval of the proposed new assistance or further expansion of existing subsidies, no new funds will be committed for new subsidies or expansion of existing subsidies," said the instructions given to the employees under the ministry. In the

directive, it is mentioned that "since it is now impossible for the US government to obtain all and sufficient information to determine whether foreign aid policies and interests are effective, all grants in accordance with President Trump's foreign policy have been suspended." It is stated in the instructions that the foreign policy will be carried forward after reviewing the effectiveness and continuity of the subsidy. The directive states that a comprehensive review of foreign aid will be conducted within 85 days to ensure that it meets President Trump's foreign policy goals. Earlier, Secretary of State Rubio said that US spending abroad should ensure that the US is made 'stronger, safer or more prosperous'.

Aid for emergency food aid and military funding to Israel and Egypt has not been stopped. The directive, which came at a time when there was a ceasefire between Israel and Hamas, is seen to make humanitarian aid in the Gaza Strip and the famine crisis in various countries, including Sudan, more dire.

It is seen that the new directive of the Ministry of Foreign Affairs will have a big impact on foreign programs funded by the US. America is the country that gives the most foreign development aid in the world. In 2023, the United States provided international aid equal to 68 billion US dollars. Out of the amount given to 176 countries, 88 percent is financial assistance and 12 percent is military assistance, according to "Foreign Assistance.gov". Nepal ranks 16th in terms of grants. Nepal received assistance worth 696 million 6170 thousand 849 US dollars. Of that, 694 million 4421 thousand 443 is economic and 1749 thousand 466 US dollars is military support.

The US has been providing grants to Nepal through budget (budgetary) and non-budgetary (non-budgetary) means. Most of the grants come through the United States Agency for International Development (USID). Grants coming through Millennium Challenge Corporation (MCC) are separate for infrastructure related programs in Nepal. A five-year strategy agreement has been reached between the Ministry of Finance and USID regarding the use of American assistance. The last agreement was made on May 15, 2022. At that time, the International Financial Aid Coordination Division of the Ministry of Finance had an agreement for a grant of 659 million US dollars (Rs 79 billion 71 crore) from the US for five years.

Experts say that Nepal will be affected by the US government's new directive even as it is the country that provides the most subsidies to Nepal. Programs that have already been decided between governments will be less affected. But there may be a problem in raising grants for the new program," said Dhaniram Sharma, the head of the division. "Until official information is received about the latest decision of the American government, nothing can be said about whether the assistance Nepal is getting will be affected." He claimed that the projects that are being conducted under the agreement will also be directly affected. "According to the information received so far, it cannot be ruled out that all programs including the MCC, which are being operated with American support, will be affected," said the official. The official's statement is confirmed by the fact that the American Embassy in Nepal and the American Assistance Mission are suddenly canceling their and their partners' programs that had been scheduled earlier.

Former Secretary to the Government Kewal Bhandari said that it is too early to assess whether the American decision to stop foreign aid will have an impact on Nepal. America is our big development partner. He has been giving both budgetary and non-budgetary grants. Most of the non-budgetary grants are being spent through various organizations,' he said, 'President Trump has said to stop foreign aid activities for 90 days.' Bhandari said that because of his subsidy program in these areas in Nepal, he may be affected. USAID also has a program in the field of climate change. "President Trump has said that he will reduce his role in the climate sector," he said, "America has to decide what to do with the projects it is conducting around the world." "Through the activities of foreign aid, the American presence in countries around the world is intensive and also contributes greatly to the social and economic activities of the countries that receive aid," he said According to assistance.gov', Ukraine received the most grants from the US in 2023. Ukraine received a subsidy worth 17 billion 1937 million 10 thousand 403 US dollars. 16 billion 93 million 12 million 20 thousand 446 US dollars of economic and 26 million 24 million 89 thousand 957 US dollars of military aid given to Ukraine. Ukraine, which is at war with Russia, will also be affected by the new directive. Previously, the Joe Biden administration had provided arms worth billions of dollars to Ukraine.