The government of Nepal and the US government’s Millennium Challenge Corporation (MCC) have announced an additional US$50 million in US grant financing for the MCC Nepal Compact.

This brings the Compact’s total value to $747 million, $550 million from the United States and $197 million from the government of Nepal, the US Embassy said in a statement on Wednesday.

On January 2, the Millennium Challenge Corporation Board of Directors approved $50 million of additional funding for the Nepal Compact but was stopped to release after Donald Trump got elected as the President of the United States of America and announced a review of all foreign assistance.

“The additional funding reaffirms our mutual dedication to ensuring the compact’s success in strengthening Nepal’s electricity grid and supporting long-term economic growth,” said MCC Vice President of Compact Operations Cameron Alford after approval of additional $50 million to the MCC–Nepal Compact.

After Trump became the US President in January, his administration had paused and reviewed its entire foreign assistance, including the MCC, putting at risk the future of MCC in Nepal and other countries.

After completing the review, on July 25, the MCC stated that the Foreign Assistance Review for MCC’s portfolio was completed where MCC’s resulting portfolio will clearly align with the Trump Administration's America First foreign policy and ensure that the agency continues to make America safer, stronger, and more prosperous.

Additional details will be conveyed in the coming weeks following the MCC Board process as well as engagement with Congress and MCC’s partner countries, said the MCC.

In its revised objectives, the MCC Board meeting on August 22 said, “The Millennium Challenge Corporation is an independent US government agency focused on advancing America’s economic and strategic interests through results-driven foreign assistance. MCC’s investments support large-scale infrastructure, strategic reforms, and economic modernisation that deliver measurable returns.”

With the US assistance of $550 million by the US government and $197 from the government of Nepal, the MCC—Nepal Compact investment aims to increase the availability and reliability of electricity, maintain road quality, and facilitate regional trade—helping spur investments, accelerate economic growth, and reduce poverty.

“The added resources [$50 million] will help deliver the Compact’s core objectives: completing priority electricity transmission infrastructure, strengthening Nepal’s power system, and enabling increased regional power trade. By improving grid reliability and market access, the Compact is expected to support international connectivity and promote American excellence and best practices in energy infrastructure,” reads the embassy statement.

The compact also expands opportunities for US companies and technology to enter Nepal’s market, the statement added.

This funding reflects the enduring partnership between the United States and Nepal, said the embassy. “For decades, our countries have worked together to advance economic growth, energy security, and mutual prosperity,” it added. The MCC Nepal Compact continues that record through no-debt, grant-based assistance focused on high-impact infrastructure, reads the statement.