KATHMANDU: Following an executive order by US President Donald Trump, the implementation of 70 projects worth Rs 2.66 trillion in Nepal, funded by US assistance, has been halted with immediate effect.

According to the Ministry of Finance’s 2022 Development Cooperation Report, the US has been the largest bilateral donor to Nepal.

These projects, running since 2011, include both government-run and non-governmental organization (NGO)-run initiatives.

They encompass cash grants, technical assistance, and in-kind aid, all of which have been impacted by Trump’s new executive order.

The sectors most affected include 12 health programs, 10 in agriculture and forestry, 7 in family and child welfare, and 6 each in education and economic affairs.

A total of 67 projects/programs, which are off-budget and implemented by NGOs, INGOs, and some government agencies, are now suspended.

According to the Ministry of Finance’s Development Finance Management Information System, 15 ongoing cash grant projects with a total value of $1.32 billion (Rs 178.63 billion) have been halted.

The largest project affected is worth $698 million (Rs 94.23 billion) under the Development Objectives Agreement, which covers a broad range of sectors, including education, health, water, community development, social security, and economic affairs.

The second-largest impact will be on the Millennium Challenge Corporation (MCC) Compact program.

Development assistance worth $500 million under the MCC, as well as Rs 68.95 billion allocated for power transmission lines and road repairs, has also been suspended.

Additionally, 21 programs funded by the US aid agency USAID, amounting to $178.14 million (Rs 24.49 billion), have been halted.

The USAID office in Nepal has notified its partner organizations to cease all activities, except for salary payments, for the next three months.