USAID Nepal halts aid for four projects

By A Staff Reporter,Kathmandu, Jan. 28: United States Agency for International Development (USAID) has suspended financial assistance to Nepal.

USAID Nepal has written to the Ministry of Finance informing that grant assistance received for four projects has been suspended for 90 days, according to a statement issued by the spokesperson for the Ministry of Finance, Mahesh Bhattarai on Monday.  

According to Bhattarai, USAID Nepal has informed through a letter that the grant assistance received by Nepal through the Development Objective Agreement (DOAG) signed between USAID and the government of Nepal on May 5, 2022, which is paid from the consolidated fund through the budget system (On-Budget On-Treasury), has been suspended for 90 days for four projects. 

The suspended four projects include USAID Health Direct Financing Project, USAID Agricultural Direct Financing Project, USAID Education Direct Financing Project and USAID Inclusive Policy Direct Financing Project.

The ministry has informed all concerned agencies not to create any liabilities towards USAID resources under the suspended projects for the coming 90 days.

Meanwhile, in a statement, the Office of Spokesperson of the US Department of State on Sunday said that consistent with President Trump’s Executive Order on Reevaluating and Realigning United States Foreign Aid, Secretary Rubio had paused all U.S. foreign assistance funded by or through the State Department and U.S. Agency for International Development (USAID) for review. 

He is initiating a review of all foreign assistance programmes to ensure they are efficient and consistent with U.S. foreign policy under the America First agenda, read the statement.

“President Trump stated clearly that the United States is no longer going to blindly dole out money with no return for the American people. Reviewing and realigning foreign assistance on behalf of hardworking taxpayers is not just the right thing to do, it is a moral imperative. The Secretary is proud to protect America’s investment with a deliberate and judicious review of how we spend foreign assistance dollars overseas,” read the statement received by this daily from the Embassy of the US in Kathmandu.