U.S. Resumes Infrastructure Funding for Key Projects in Nepal

The United States has announced the resumption of funding for two critical infrastructure projects in Nepal, previously halted following President Donald Trump's decision to suspend foreign development assistance. The Millennium Challenge Corporation (MCC) had agreed in 2017 to provide $500 million to support a power transmission line and road improvement initiative in Nepal, one of the world's poorest countries.

These projects were paused after President Trump imposed a 90-day freeze on foreign aid to assess its efficacy and alignment with U.S. foreign policy. According to a statement from Nepal's finance ministry, the U.S. government has completed its review, paving the way for the MCC Nepal Compact's implementation.

The transmission line aims to enhance power trade between Nepal and India. The U.S. embassy in Nepal confirmed this development, highlighting the project's role in fostering regional energy security and improving infrastructure. Meanwhile, other projects in education, health, and agriculture remain stalled amidst budget cuts under Trump's administration.

(With inputs from agencies.)