Kathmandu, February 19
US President Donald Trump has disclosed the reason behind stopping financial aid previously provided to Nepal for biodiversity conservation and fiscal federalism, calling the funding a “fraud.”
After assuming office for his second term on January 20, 2025, Trump signed an executive order suspending foreign aid programs. As a result, a total of $39 million—$20 million for fiscal federalism and $19 million for biodiversity conservation—has been halted. Speaking at a press briefing, Trump stated, “This is fraud.”
Trump made the remarks during a press conference at his Mar-a-Lago residence in Florida, where he also signed additional executive orders.
Earlier, the US Department of Government Efficiency (DGE), led by Elon Musk, had canceled six projects funded by USAID in Nepal. Additionally, payments for projects under the Millennium Challenge Corporation (MCC) in Nepal have been suspended.
Trump further announced that financial aid to other countries, including India, the Maldives, Liberia, Mali, and South Africa, has also been halted.
Questioning the need for US aid to India, Trump noted that the country had been receiving $21 million for electoral literacy. “We have a good relationship with India. Prime Minister Modi recently visited, but why should we give them money?” Trump said. “They have plenty of money.”
He also revealed that $29 million in aid for political stability in the Maldives has been suspended.
