The Donald Trump administration is yet to decide the fate of the ongoing projects under MCC. 

Issuing a press statement, the US Embassy in Kathmandu said:  “In February 2025, the Secretary of State approved a specific exception to the 90-day pause on US foreign assistance for the MCC Nepal Compact, while the US government review on US foreign assistance continues.” 

Under this exception, the MCC Nepal Compact is authorized to continue with full implementation. MCC and the US mission in Nepal continue to engage stakeholders in support of a constructive outcome of the review, the statement said.

The US. Embassy added MCC is working closely with the Ministry of Finance and MCA-Nepal to ensure that the activities undertaken or initiated under the compact, including potential new obligations, are aligned with US and Nepal’s priorities and ensure transparency, sound governance, effective delivery, and prudent risk management.

The US Embassy also reaffirmed America’s commitment to its bilateral relationship with Nepal and supporting the Nepali people through efforts that promote prosperity and long-term economic resilience.