Trump freezes aid to Nepal citing fraud

Kathmandu, February 19 — After assuming office for a second term, US President Donald Trump has taken swift action by signing several executive orders, including halting foreign aid to multiple countries.

Among the affected nations are Nepal, India, and Bangladesh, with funds for various sectors being suspended.

Just days ago, the Department of Government Efficiency (DOGE), led by Elon Musk, announced it would stop assistance to Nepal, India, and several other countries under various headings, including biological diversity protection and fiscal federalism.

The DOGE revealed that nearly $39 million (around NPR 5.43 billion) in aid to Nepal was blocked, including $20 million for fiscal federalism and $19 million for biodiversity conservation.

In a press conference held at his Mar-a-Lago estate in Florida, Trump labeled the aid to Nepal as "fraud."

He explained that the funds distributed under different titles were part of a deceptive system.

"This is fraud," Trump stated while speaking to journalists.

The suspension of aid has raised concerns, particularly about the delay in payment for the Millennium Challenge Corporation (MCC) project in Nepal.

Previously, the United States Agency for International Development (USAID) had also canceled six ongoing projects in Nepal.

Trump also questioned the rationale behind providing aid to India, a country with abundant resources.

"Why are we giving them money? They have plenty of funds," he remarked about India's $210 million earmarked for election literacy.