Trump Administration Shuts Down Millennium Challenge Corporation

The Trump administration is shutting down the Millennium Challenge Corporation (MCC), a foreign aid agency that collaborates with over fifty countries, including Belize, to boost economic growth. The Department of Government Efficiency, led by Elon Musk, announced the decision in an email to employees on Tuesday. The Millennium Challenge Corporation currently manages over five billion dollars in active grants across twenty lower-income countries. These grants are either signed or in the process of being implemented. On September fourth, 2024, the Government of Belize and MCC signed a landmark five-year US$125 million Grant Agreement. This funding would have been directed towards significant investments in Belize’s education and energy sectors. The Education Project focused on increasing the number of post-primary graduates with skills relevant to the current and future job market. This would be achieved by transforming teaching methods, improving access to secondary education, and strengthening the legal and institutional framework for Technical and Vocational Education and Training. Meanwhile, the Energy Project aimed to reduce electricity costs by facilitating new power purchase agreements for affordable renewable energy, modernizing the grid to handle variable power generation efficiently, and supporting the Government of Belize in enhancing policies and regulations for the effective use of renewable energy. Both projects were to be managed by the newly established Millennium Challenge Account-Belize (MCA-Belize Authority), a statutory body formed in August 2024. Prime Minister Hon. John Briceño represented the Government of Belize, while CEO Mrs. Alice Albright signed on behalf of MCC. Project implementation was set to begin in 2025. The Department of Government Efficiency’s move to target MCC adds to the Trump administration’s broader efforts to cut back on foreign aid groups.