– Buddha M Dhakal

Soon after resuming office, US president Mr. Donald J Trump sparked a number of freeze actions on federal government programs, particularly targeting the USAID funding abroad. The 90-day freeze actions prompted closing the doors of USAID head office in Washington DC, putting its top leaders on paid leave and asking employees to work remotely.

Elon Musk, president’s chosen man to lead the newly created department- Dept of Government Efficiency, termed the USAID as one of the corrupt government agencies and needs to be closed permanently.

This article focuses on the impacts on projects/programs in Nepal due to USAID’s freeze on budget.

Question about USAID funding to Nepal was raised in US congress by Florida Representative Brian J. Mast. He mentioned that half a million dollar was spent promoting atheism in Nepal. In his blog post of Feb 7, 2025, he reiterated the concern of wasteful spending by USAID. He is the chairman of House Foreign Affairs Committee. Earlier in August 2024, Michael McCaul, representative of Texas, summoned Humanists International to handover records of spending the half million dollar grant from State Department to promote atheism in Nepal. According to New York post, the State Department has solicited applications for this grant in 2021.

Now it seems it is real.

The basic assumption for Trump’s executive order to freeze foreign assistance is that it has done more damage and wasted huge amount of US tax dollars than any good to receiving countries.

Nepal has been very vulnerable to these damaging dollars.

Historically, US assistance to Nepal began as early as 1951, after the establishment of diplomatic relations between US and Nepal in 1948. But, after the creation of USAID in 1961, the assistance flowed in more affluent pattern.

Not much data is available on funding by USAID to Nepal during the Panchayat era.

The recent data shows the dollars went mostly to strengthen democracy, foster inclusive governance, risk reduction and adaptation to climate change, infrastructure development and so forth. When we look at the flow of dollars, it is like a channel full of high current water. For instance, in September 2014 a press release by US embassy in Nepal announced $402 million assistance for five years in agreement with Ministry of Finance. Same year and same month another aid upto $70 million was announced to build a more resilient Nepal. Soon after, in October 2014, additional $500,000 was announced for assistance to flood victims. So, in terms of dollar give-away announcement, Nepal received $472.5 million just in two months.

Let’s look at another example. As per US State Department post of July 2022, the department and USAID had committed $643 million in assistance in last five years. “Through this assistance, USAID is advancing the U.S.-Nepal partnership to reinforce democratic systems, foster broad-

based economic growth, strengthen health and education systems, and improve the management of natural resources.”

Has anyone in Nepal deconstructed the terms used in the agreements/announcements tied to the dollars? What does that “broad-based economic growth” entail? How much of that economic growth actually realized in those five years?

With agreement of 402 million dollars for five years in 2014, and 643 million dollars committed for five years spanning 2017-2021, if actually flowed, the assistance was superimposed. Any financially literate Nepali can and should dig out what major accomplishments had been achieved by such assistance during 2014-2021.

To refer to State Department post, “US has provided over $190 million for earthquake relief, recovery, and reconstruction. With USAID support, the Government of Nepal has disbursed $1.3 billion to 749,000 households.” What is the veracity of this data? How can we relate it to the actual recipients? Moreover, it is quite not clear here, whether this relief amount came under any of the previous agreements.

It appears commitments or agreements for financial assistance to Nepal come pretty spontaneously and very often. But, how are the finances managed is less known. Yubaraj Sangroula, former Attorney General and a law professor writes on his Facebook page: Since 2000, 21 billion dollars have been received in Nepal of which USD 80 million and 222 million Danish Kroner was invested in education sector.

Despite the amount of funds, the status of public education in Nepal has not improved significantly, although infrastructures have improved in some schools. Higher education still faces the apathetic attitude. It is the most likely reason for outmigration of youths.

Projects Affected

Per Yubaraj Sangroula’s post on Facebook, five hundred projects were funded in Terai in 2017-18 and seventy four non-governmental organizations operated these projects.

A commitment of $659 million by USAID and State Department for assistance to Nepal is affected due to freeze on foreign assistance programs. Per Sangroula’s post, three hundred Nepali and non-Nepali organizations would have received this funding to implement the projects.

Looking back at the dollar amounts disbursed to Nepal in fiscal year 2024, total of $151,165,796 went through USAID, MCC, State Department and Department of Agriculture. USAID disbursed the biggest chunk, $123.8 million, followed by MCC pact that disbursed $20.88 million. Going by the data of ForeignAssistance.gov, the disbursements went to economic development (52.3 M), health sector (41.45M), democracy, human rights and governance (11.04M), education and social services (12.02M) and for supporting programs (31.56M). Insignificant amount is spent on peace and security (421.6 thousand) and environmental sector getting just 275 thousand dollars.

If one digs deeper into any one sector, there is no dearth of fancy project terminologies used. For example, USAID launches health direct financing project to strengthen Nepal’s health system, a partnership project with Ministry of Health and Population. This 25 million dollar project supports

Nepal Health Sector Strategic plan (2022-2030) and focuses on Karnali province to improve health conditions. The language is sweet, the focus on Karnali province is encouraging that the region gets improved health services and facilities. But, how far these dollars go to enrich basic health services in remote areas. What change of services will it bring for people served by lone health worker like Tulasi Shahi in Mugu? What does that “fair and strong healthcare services” mean to people in Karnali?

Similarly, USAID Karnali Water Activity is a project implemented by Development Alternatives, with funds amounting to $2,634,260. This project activity is scheduled to end July 2026. Are villages in Karnali getting water worth this funding?

To be specific on health projects that is most likely to be affected, USAID fund of $5,856,222 has been assigned to project # 7200AA19CA00002. This project, “meeting targets and maintaining epidemic control” (TMEC), has a very dubious language, something like reaching target populations for treatment of influenza viruses, including COVID-19. The project activity should end December 30, 2027. The other component of this same project is for HIV/AIDS, funded by State Department worth $ 7,254,251. For both these activities, the implementing partner is an international NGO, whose information is redacted.

The question is, what outcomes are identified so far in these areas. Per Elon Musk and DOGE language, this is corruption and probably a criminal activity.

The other health project Adolescent Reproductive Health (ARH) is in operation with CARE International as implementing partner. The disbursed amount in 2023 is $4,579,053, which does not have any starting date, but the activity ends by May 2027. It is likely the similar waste of money as Mr. President talked of promoting condoms among Hamas.

Examining the funding for Education sector, one activity was awarded $1,916,994 in fiscal year 2023 to Government of Nepal for implementation of basic education that covers literacy, numeracy and other basic skill programs. In FY 2024, the project ‘Early Grade Learning’ was awarded to Chemonics International worth $2,817,310. Comparing these two figures invested in education, it is obvious that Nepali government received less amount than NGO or INGO. The project marked to end by September 2028 is bound to face abortion.

Fiscal Federalism Reforms is particularly mentioned by Mr. Trump in one press briefing. For fiscal year 2024, the amount disbursed is $3,262,418 to an implementing partner named Deloitte. This London based company provides audit, consulting, financial advisory, risk advisory, tax and legal services globally. I bet no Nepali know about this INGO. President Trump mentions it being awarded 20 million dollars and considered as fraud. The project was set to end October 2027.

Similarly, a project named Nitisamvad was awarded $20 million for five years (2017-2022). The language is very promising: This program will support democratic institutions, strengthen inclusion into political processes and harness political competition as an effective vehicle through which citizens can democratically choose their leaders who will, in turn, set a policy agenda responsive to the needs of the public.

How do Nepalese voters measure the accomplishment of this dollar funded program? Both fiscal federalism reforms and nitisamvad would have been funded to bribe political figures of Nepal inclined to

damage the rich socio-cultural and religious fabric of Nepalese society. The larger mass of Nepali citizens and voters are beguiled and misguided.

The expose of USAID and other foreign assistance program of US as fraud, corruption and even “criminal” by Elon Musk’s DOGE team created a wave worldwide. Nepal is shaken feverishly, and those who depend on such fund source as means of wealth might be dizzy. It appears that everyone subscribe to the idea of closing down the USAID mission in Nepal, including probably, those who benefited from these dollars siphoned fraudulently.

One such mega-project is gradually being debunked as ‘expansion of atheism’ which has threatened the long-cherished religious traditions of Hindus, Buddhists, Kirat and other indigenous communities who lived in harmony for more centuries than emerging of America as a nation.

Very disturbing is the fact that US house speaker, Mike Johnson, spoke of the dollar amount much bigger than what Brian Mast and Michael McCaul found. Let all intellectuals explore the details of all facets of dollar-addiction and abuse in Nepal.