Millennium Challenge Corporation closes as part of Doge efforts
Millennium Challenge Corporation closes as part of Doge efforts
Department of Government Efficiency Factically closed to reduce the federal expenses, reported CNN.
Personnel cuts and program reductions
On Tuesday, the authority employees were informed by email that "soon a significant reduction" of the staff and programs will occur-only one week after Doge has occurred in MCC, according to an informed source. The source added that the employees may be transferred to administrative leave from May 5th.
The plan to reduce the staff provides for all employees to be released except for the incumbent CEO, since the authority is legally obliged to have a head.
effects on international help
CNN asked MCC and Doge for a comment. This measure is the latest attack by the Trump administration and Doge on the U.S. The administration has initiated movements to the us Agency for International Development Rel = "NOFOLLOW" TARGET = "_ blank" href = "https://www.cnn.com/2025/19/politics/us-institute-of-peace-sues-fter-doge-take/index.html"> Us institute of peace as well as the african development foundation , including. Many of these efforts have resulted in legal complaints.
The role of the MCC
The MCC, which was founded in 2004 by the Congress, grants “temporary grants” to dozens of developing countries, including Ukraine, El Salvador and Nepal, to promote infrastructure and reform in politics.
Similar to other federal authorities, MCC employees were offered the options of an early retirement incentive or a postponed withdrawal program, in which they are transferred to administrative leave and paid by September 30th. Until Tuesday, employees have time to register for one of the programs, two sources.mood among the employees
The first source described the mood among the authority's employees as "discouraged" after the email was sent, and added: "It is a slap in the face."
US reaction to China's Belt and Road Initiative
The MCC is often seen as the US response to China's Belt and Road Initiative, which also finances infrastructure in developing countries. The United States has long spoken out against the Chinese initiative and advised countries advisable to participate.
Charles Kenny, a senior fellow at the Center for Global Development, noted that “the Millennium Challenge Corporation is almost the only element of the US government that finances the public infrastructure in developing countries-similar to what Belt and Road initiative China does, but with grants instead of loan.”
With the recently made considerable cuts in foreign aid, such as the MCC and USAID, critics warn that the United States will influence countries such as China.
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