Millennium Challenge Corporation shutdown ordered by DOGE

By Al Mayadeen English
Source: News websites
24 Apr 2025 13:03

With this move, the US administration is bringing an end to nearly two decades of foreign aid efforts amid shifting policy priorities and ongoing human rights concerns.

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Elon Musk flashes his T-shirt that reads "DOGE" to the media as he walks on the South Lawn of the White House, on March 9, 2025 (AP)

The US government is shutting down the Millennium Challenge Corporation (MCC), an aid agency created in 2004 with the stated goal of promoting global economic growth, Reuters reported, citing a staff meeting recording and internal communications.

The decision, driven by Elon Musk’s Department of Government Efficiency (DOGE) and backed by President Donald Trump, is part of a broader effort to reduce foreign aid and scale back federal government spending.

DOGE officials informed MCC staff on Wednesday that all programs will cease and staffing will be significantly reduced. The move aligns with the Trump administration’s stance that foreign aid is not a national priority.

“Foreign aid is not a priority for the administration, and so MCC's work needs to wind down,” said Kyeh Kim, a senior MCC official, during the meeting.

Trump and Musk target foreign aid in government cuts

The Millennium Challenge Corporation shutdown follows the dismantling of USAID, Washington's primary aid agency, which previously handled around $40 billion annually. MCC, operating on a smaller scale with a $900 million annual budget, focused on infrastructure and economic development projects in partnership with developing nations.

Projects included electricity improvements in Senegal and Nepal, road upgrades for farmers, and a wastewater treatment facility in Mongolia. Only a few active projects will continue until completion.

An MCC employee told Reuters that nearly all agency work had been halted. Staff, about 300 in total, have until April 29 to choose between early retirement, deferred resignation with pay until September, or administrative leave.

“This is very much a business- and infrastructure-focused way of doing development. It's very much in America's interest,” the employee said, requesting anonymity.

In an internal meeting, Kim advised staff to consider their families when making decisions about their future.

“The organization's future looks very stark,” she warned.

Foreign aid no longer a priority, officials say

DOGE, spearheaded by Musk, has accelerated government downsizing, arguing that US taxpayer funds should not be used for foreign aid initiatives. The Millennium Challenge Corporation shutdown reflects a significant shift in US foreign policy priorities.

The MCC was established with bipartisan support under President George W. Bush, with the stated goal of reducing poverty through sustainable economic development. Its closure marks the end of nearly two decades of US-funded initiatives in key regions.

Meanwhile, tensions between the administration and the media have grown, with figures like Elon Musk and President Trump accusing outlets such as Reuters of bias.

Human Rights and Criticism

Despite its selective approach to aid, the MCC has faced criticism related to human rights and social impacts. In some African countries, MCC-funded projects have been accused of contributing to land disputes and lacking sufficient environmental safeguards.

Human rights groups have occasionally criticized the US for partnering with countries that, while meeting MCC’s criteria on paper, have questionable records on political freedoms or minority rights.

Critics also argue that economic development projects often prioritize business and infrastructure outcomes over long-term social equity and environmental sustainability.

While the MCC has mechanisms to suspend or terminate compacts if partner countries fail to uphold key standards, enforcement has at times varied, influenced by broader US foreign policy interests.