MCC Proposes Budget for 2026, Indicating Project Resumption

The Millennium Challenge Corporation (MCC), a U.S. foreign aid agency, has proposed a budget allocation of $224 million for the fiscal year 2026. This proposal signals a possible revival of the MCC project, which had been suspended earlier in January this year.

According to the latest update published on the MCC's official website, the proposed budget for 2026 is significantly lower compared to previous years. In 2025, MCC was allocated a budget of $930 million. The sharp reduction in proposed funding is expected to affect MCC programs in Nepal and other partner countries.

Over half of the proposed 2026 budget is earmarked for administrative expenses. MCC's May report reveals that $128 million has been allocated for administrative costs. Additionally, $91.5 million is proposed under the "Compact Development Oversight" heading, and $4.5 million for the Office of the Inspector General.

Earlier, on January 20, U.S. President Donald Trump, upon taking office, had decided to suspend the MCC program for 90 days. With the new budget proposal in place, there are signs that the project may now resume.