The United States has maintained a notably low-key profile in Kathmandu amid policy uncertainty under the Donald Trump administration and shifting political dynamics in Nepal.
Washington’s decision to rebuke or roll back several longstanding policies, including the dismantling of USAID and the absence of clear strategic guidance, left US embassies abroad uncertain about their priorities. As a result, US engagement in Nepal declined sharply, accompanied by a noticeable drop in high-level visits between Kathmandu and Washington.
It was only in Aug 2025 that President Trump appointed Sergio Gor as the next US ambassador to India and special envoy for South and Central Asian affairs. During this interim period, the US Embassy in Kathmandu worked largely behind the scenes to persuade the new administration to continue the Millennium Challenge Corporation (MCC) compact.
Shortly after State Department officials began re-engaging on South and Central Asia, Nepal experienced major political upheaval that led to the fall of the KP Sharma Oli-led government. Unverified reports and rumors alleging the involvement of US-backed non-governmental organizations in Sept 8–9 GenZ protests further reinforced Washington’s cautious approach and contributed to its subdued public posture.
Following the formation of a new government under former Chief Justice Sushila Karki, the US formally welcomed it. Since then, however, there have been no public US statements on elections or Nepal’s internal political developments. While the ambassador and senior embassy officials continue to attend public events, they have largely refrained from commenting on domestic politics or the broader trajectory of bilateral relations.
This restraint has fueled concerns in Kathmandu about the Trump administration’s priorities toward Nepal. Addressing these concerns this week, senior State Department officials said the US is recalibrating—not withdrawing—its assistance. They indicated that future support will be narrower and more selective, focused on areas that serve US national interests and align with President Trump’s foreign policy agenda.
Allison Hooker, US Undersecretary of State for Political Affairs, said the administration’s aid strategy represents a calibration, not a pullback. “The US is a Pacific power, and the future of the Indo-Pacific is directly tied to our core national interests,” she said, emphasizing that Washington’s commitment to the region remains firm.
As senior US officials step up visits to other South Asian countries, diplomatic sources suggest Kathmandu could see similar engagements in the coming days, potentially offering clearer signals of Washington’s evolving approach to Nepal.