USAID cuts funding, hurts Nepal’s development projects

Kathmandu, Nepal – The recent decision by the Trump administration to stop USAID funding has caused problems for Nepal. The budget cuts put nearly $700 million in grants at risk until 2027, affecting important development projects.

Main areas impacted include healthcare, education, agriculture, and civil society. Programs that help reduce newborn deaths, improve early education, and support farmers have been paused. Also, funding for projects that promote democracy and human rights has been cut.

Nepal’s government and USAID had signed a five-year agreement worth $659 million in 2022, which is now on hold. USAID’s main goal is to help Nepal become more self-reliant, prosperous, and inclusive.

The sudden stop in aid has worried health experts, teachers, and farmers, who fear that years of progress could be lost. The government is looking for other funding options to continue important programs.

Despite the recent USAID budget cuts, there are still 21 key USAID-supported projects ongoing in Nepal, covering sectors like healthcare, education, agriculture, and civil society. Notable projects include:

1. **Feed the Future Nepal USAID Partnership for Poultry**

– Agreement Date: 21/11/2023
– Completion Date: 20/11/2026
– Commitment: $1,999,547
– Disbursement: $1,999,547

2. **Feed the Future USAID Nepali Tea Partnership**
– Agreement Date: 15/06/2024
– Completion Date: 14/06/2024
– Commitment: $1,000,000
– Disbursement: $1,000,000

3. **Government to Government Public Financial Management Risk Assessment of USAID Climate Resilience Municipal Services and U.S. Nepal Partnership for Biodiversity Conservation**
– Agreement Date: 08/12/2023
– Completion Date: 07/07/2024
– Commitment: $62,009
– Disbursement: $62,009

4. **USAID Agricultural Inputs**
– Agreement Date: 15/06/2023
– Completion Date: 14/06/2028
– Commitment: $0
– Disbursement: $2,000,000

5. **USAID Agriculture Higher Education**
– Agreement Date: 19/12/2022
– Completion Date: 18/12/2027
– Commitment: $0
– Disbursement: $1,415,617

6. **USAID Biodiversity**
– Agreement Date: 04/11/2022
– Completion Date: 03/11/2022
– Commitment: $0
– Disbursement: $1,414,380

7. **USAID Civil Society and Media**
– Agreement Date: 19/08/2022
– Completion Date: 18/08/2027
– Commitment: $0
– Disbursement: $1,892,234

8. **USAID Clean Air Program**
– Agreement Date: 08/11/2022
– Completion Date: 07/11/2026
– Commitment: $0
– Disbursement: $1,250,000

9. **USAID Early Grade Learning**
– Agreement Date: 30/09/2023
– Completion Date: 29/09/2028
– Commitment: $3,998,515
– Disbursement: $1,285,824

10. **USAID Education: Equity and Inclusion**
– Agreement Date: 22/09/2022
– Completion Date: 21/09/2022
– Commitment: $2,000,000
– Disbursement: $826,361

11. **USAID Food Security Monitoring**
– Agreement Date: 17/08/2023
– Completion Date: 16/04/2025
– Commitment: $499,951
– Disbursement: $499,951

12. **USAID Global Health Security Activity**
– Agreement Date: 01/10/2023
– Completion Date: 30/09/2026
– Commitment: $5,000,000
– Disbursement: $3,000,000

13. **USAID Hamro Samman II**
– Agreement Date: 11/03/2023
– Completion Date: 10/03/2028
– Commitment: $4,000,000
– Disbursement: $3,000,000

14. **USAID Integrated Nutrition**
– Agreement Date: 27/06/2024
– Completion Date: 26/06/2029
– Commitment: $7,200,000
– Disbursement: $2,296,753

15. **USAID Learning for Development**
– Agreement Date: 20/04/2022
– Completion Date: 23/04/2027
– Commitment: $0
– Disbursement: $1,393,500

16. **USAID Lentil Strengthening**
– Agreement Date: 07/01/2023
– Completion Date: 31/12/2026
– Commitment: $0
– Disbursement: $1,990,000

17. **USAID Local Works Support**
– Agreement Date: 08/01/2029
– Completion Date: 07/01/2029
– Commitment: $1,987,234
– Disbursement: $1,242,537

18. **USAID Localization Support**
– Agreement Date: 13/06/2024
– Completion Date: 12/06/2027
– Commitment: $2,339,347
– Disbursement: $662,357

19. **USAID Nepal Engineering Services**
– Agreement Date: 04/08/2023
– Completion Date: 14/07/2028
– Commitment: $821,273
– Disbursement: $313,934

20. **USAID Public Financial Management (Digo Bitta)**
– Agreement Date: 11/10/2022
– Completion Date: 10/10/2027
– Commitment: $0
– Disbursement: $518,509

21. **USAID Trade and Competitiveness (Udhyam Nepal)**
– Agreement Date: 26/01/2023
– Completion Date: 25/01/2027
– Commitment: $0
– Disbursement: $791,785