The Ministry of Finance has announced that 7 programs that are being designed and run in Nepal by the American Assistance Mission (USAID) have been stopped.

In a statement issued on Monday, the ministry said that 4 programs currently operating in Nepal and 3 programs under design have been stopped.

Shyam Prasad Bhandari, the spokesperson of the ministry, said that the four programs related to education, health, agriculture and data, which are being operated through the budget system of the Nepal government, received by USAID, have been stopped for 90 days.

He said that three programs namely Biodiversity, State and Local Government Strengthening Program and Climate Uplifting Municipal Service Program are still being designed, but these programs have also been stopped according to the executive order issued by the US President on January 20, 2025.

The Ministry has mentioned in the statement that the friendly country United States of America has been supporting the development of the economic, social and infrastructure sectors of Nepal for a long time and various programs have been continuously being conducted by USAID in Nepal since 1951. MCC project postponed in Nepal, 'confusion' about future

A spokesperson of the Ministry of Finance told the BBC that MCC, one of the main cooperation programs of the US in Nepal, has been suspended for now.Joint Secretary Shyam Prasad Bhandari said that the Ministry decided to postpone the program because the Millennium Challenge Corporation (MCC) had informed the Ministry officials about the postponement of its program by email.

This decision is considered to be the effect of Donald Trump's policy of cutting foreign aid, which took office of the US President only last month.