KATHMANDU, Feb 16: The US government has rescinded $39 million (Rs 5.39 billion) in aid earmarked for Nepal’s fiscal federalism and biodiversity conservation programs. The cuts are part of a broader decision to withdraw millions in foreign funding across multiple sectors.
The Elon Musk-led Department of Government Efficiency (DOGE) took to X on Sunday to announce that it has canceled the funding to be received by Nepal among several other nations. Nepal was set to receive $20 million for fiscal federalism and $19 million for biodiversity conservation. These funds were among several global aid allocations that have now been scrapped, including $40 million for gender equality programs and $47 million for improving learning outcomes in Asia.
52% of country's foreign aid went to province 3
The decision to halt these programs signals a reassessment of US taxpayer-funded initiatives abroad, affecting various countries, including Bangladesh, Serbia, and Cambodia.
