Elon Musk-led DOGE halts grants to Nepal for federalism and biodiversity conservation

KATHMANDU: The Department of Government Efficiency (DOGE) , led by billionaire Elon Musk, has halted grants allocated to Nepal under the headings of federalism and biodiversity conservation.

The grant for federalism, amounting to $20 million USD (equivalent to NPR 2.76 billion at the current exchange rate), and another $19 million USD (approximately NPR 2.62 billion ) earmarked for biodiversity conservation in Nepal, have been suspended. DOGE announced the decision on social media platform X (formerly Twitter), releasing a list of funds previously allocated by past administrations to various countries that have now been canceled.

According to the announcement, expenditures planned under two headings in Nepal have been scrapped. “Funds allocated to the following projects, paid for by American taxpayers, have been canceled,” read the statement on X. The list also includes grants to several other countries, including Cambodia, Serbia, Bangladesh, India, Mali, South Africa, and Egypt.

Background: Formation of DOGE

Elon Musk was appointed as the head of DOGE shortly after Donald Trump was elected as the 47th President of the United States. Musk, who played a pivotal role in Trump’s election campaign and serves as an executive at SpaceX, was entrusted with the responsibility of leading this office.

The department was established by Trump with the aim of reducing government spending and improving efficiency within federal operations. Following his appointment, Musk had expressed intentions to cut costs drastically, warning that failure to do so could lead to financial instability in the U.S. He emphasized that Americans voted for Trump with the expectation of implementing major government reforms, stating, “We will move forward with reform programs accordingly.”

Broader Impacts of DOGE’s Decisions

Under the Trump administration, significant changes have already been made to streamline U.S. international aid and development programs. The administration has shut down the office of the United States Agency for International Development (USAID) in Washington, D.C., and placed a large number of employees on leave. This move aligns with the administration’s broader agenda to reduce government expenditure and redirect resources toward domestic priorities.

The cancellation of grants to Nepal and other nations reflects a shift in U.S. foreign policy, focusing on cost-cutting measures and reevaluating international assistance programs. While the decision aims to address inefficiencies in government spending, it raises concerns about the impact on critical projects such as federalism implementation and biodiversity conservation in recipient countries like Nepal.

Key Points:

DOGE , led by Elon Musk, cancels $39 million USD in grants to Nepal for federalism and biodiversity conservation.
The grants included $20 million USD for federalism and $19 million USD for biodiversity programs.
A list of canceled grants to other countries, including Bangladesh, India, and South Africa, was also released.
The move is part of the Trump administration’s efforts to reduce government spending and improve efficiency.
USAID’s office in Washington, D.C., has been shut down, and many employees have been placed on leave.