The US Embassy in Kathmandu expressing optimism for a positive outcome from the ongoing review of $697 million (MCC)..

The review of MCC's global operations is still ongoing, and the outcome is pending. Following the decision by the Department of Government Expenditure (DOGE), the future of two infrastructure projects in Nepal is in question, leading to uncertainty within the government on how to proceed if MCC support is discontinued.

MCC is collaborating closely with the Ministry of Finance and MCA-Nepal to ensure that activities under the compact align with the priorities of both the US and Nepal governments, emphasizing transparency, good governance, effective delivery, and risk management, as stated by the US Embassy on Wednesday (June 5).

The US Embassy reiterated its commitment to the bilateral relationship with Nepal and supporting the Nepali people through initiatives that promote prosperity and long-term economic resilience.

In February 2025, the US Secretary of State granted a specific exception to the 90-day pause on US foreign assistance for the MCC Nepal Compact, as announced by the US Embassy in Kathmandu on Wednesday. The US government's review of US foreign assistance is ongoing.

MCC and the US Mission in Nepal are actively engaging with stakeholders to ensure a positive outcome of the review.