The Millennium Challenge Corporation (MCC), a U.S. foreign aid agency, has confirmed the continuation of its development projects in Nepal. The Ministry of Finance issued a statement notifying that the MCC Compact will move forward, following the conclusion of a formal review process in the United States.
According to the Finance Ministry, MCC informed Nepal through an official letter dated July 24, 2025, that the review initiated under an executive order by the U.S. President on January 20, 2025, has now been completed. The review, which had temporarily suspended further implementation, was part of a broader assessment of international assistance programs.
In the statement released by Finance Ministry Spokesperson Shyam Prasad Bhandari, it is noted that MCC has recommended the continuation of the Nepal Compact. The original agreement between the Government of Nepal and MCC was signed on Bhadra 29, 2074 (September 14, 2017).
The ministry has conveyed this update to all relevant stakeholders, assuring that the MCC-funded infrastructure projects—particularly in energy transmission and road improvement—will proceed as planned.
This decision brings clarity to the future of MCC activities in Nepal, which had faced both political debate and temporary uncertainty following the U.S. executive order earlier this year.
