Belize Loses Access to $125M U.S. Grant as MCC Faces Shutdown

The Government of Belize is set to lose access to a five-year, US$125 million development grant from the United States following the sudden decision by the Department of Government Efficiency (DOGE) to shut down the Millennium Challenge Corporation (MCC), a major U.S. foreign aid agency.

The MCC had signed the grant agreement with Belize just seven months ago, in September 2024, marking a historic investment in the country’s education and energy sectors. The agreement was signed by Prime Minister John Briceño and MCC CEO Alice Albright and attended by U.S. Ambassador Michelle Kwan and Minister of State Christopher Coye.

Now, with the agency slated for closure, the future of the Belize Compact — which included transformative projects to expand access to education and reduce electricity costs — hangs in the balance. The new MCC-funded implementing agency, Millennium Challenge Account-Belize, was scheduled to begin project rollout in 2025.

An internal MCC email this week confirmed that the agency’s 320 employees have been offered early retirement or deferred resignations, with operations winding down within 90 days. DOGE is expected to present a resolution next week to formally terminate MCC’s global grant programmes, affecting 20 countries with over $5.4 billion in active funding.

The closure is part of a broader push by the Trump administration and DOGE head Elon Musk to dismantle select government agencies. Though Musk has announced plans to step down, DOGE continues its efforts to cut back U.S. foreign aid programs.

MCC’s compact with Belize aimed to reduce poverty by improving technical education and modernising the power grid with lower-cost renewable energy. Now, without the U.S. partnership, these long-planned initiatives face indefinite delays or cancellation.