The Millennium Challenge Corporation (MCC), a U.S. foreign aid agency established under the George W. Bush administration in 2004 to promote economic growth in developing countries, is being shut down by the Department of Government Efficiency (DOGE), led by Elon Musk under the Trump administration.
The Shutdown Announcement
According to Reuters and Politico, DOGE is ending MCC’s work as part of a broader push to reduce federal spending, claiming that U.S. taxpayer money has been misused. An internal email sent on April 22, 2025, confirmed the decision to MCC’s approximately 300 employees—mostly based in Washington, D.C., with around 20 overseas. The email stated that all programs would be wound down, and staff would be reduced to a legal minimum, retaining only the acting CEO due to statutory obligations.
Impact on Employees and Ongoing Projects
Employees were given until April 29, 2025, to either take voluntary early retirement or opt for deferred resignation with pay until September. Those who don’t opt in face administrative leave starting May 5, 2025.
MCC currently funds infrastructure development projects in over 20 countries—including Nepal, Senegal, Mongolia, and Ivory Coast—ranging from electricity grids and roads to schools and wastewater plants. According to Devex, a few ongoing projects have been granted a three- to four-month wind-down period to avoid abrupt disruptions.
Concerns from Experts
The closure has raised alarm among U.S. foreign policy analysts and development experts, who say ending MCC’s programs will weaken America’s strategic influence—especially in regions where MCC was viewed as a counterweight to China’s Belt and Road Initiative. Social media reactions in countries like Nepal have ranged from concern over halted development efforts to debates about U.S. geopolitical shifts.
Broader Political Context
Neither MCC nor DOGE has issued any public statements regarding the shutdown. Meanwhile, the move aligns with President Trump’s broader agenda of downsizing the federal government and cutting foreign aid spending. The administration had previously dismantled other foreign aid programs, including elements of USAID.
The shutdown follows Elon Musk’s announcement that he will reduce his role in DOGE and focus more on his private ventures, notably Tesla, after a difficult quarterly earnings report. Without Musk’s direct involvement, DOGE may lose momentum, with power shifting back to traditional agency leadership.
