PM Says U.S. Grant Cut Won’t Shake Budget—But Belize Has a Plan B

Prime Minister John Briceño is downplaying concerns over the reported cancellation of a major U.S. grant, saying it won’t impact the government’s financial plans. The grant in question—worth a hefty one hundred and twenty-five million US dollars from the Millennium Challenge Corporation—was earmarked for poverty reduction and energy development. Of that, seventy-three point eight million was set to go toward education, and $twenty-one point seven million for an energy project. Speaking to reporters last Friday, the PM explained that the funds were never factored into the national budget, so their absence doesn’t throw off the numbers. And as of today, he says Belize still hasn’t received any official word confirming the cancellation. Still, Briceño remains hopeful the funding will come through—but assured the public that there’s a backup plan if it doesn’t.

 

Prime Minister John Briceño

“I wish to clarify that these funds are not included in our national budget, but rather directly managed by the M.C.C. under a separate financial and accounting arrangement as set on the Millennium Challenge account, Belize Authority Act of 2024. Mr. Speaker, on the 20th of January, 2025. President Trump issued an executive order which mandated a 90-day pause on new obligations and disbursements of United States Government development assistance funds for foreign governments, including funding for the M.C.C. Compact with Belize. Just over three weeks ago, we received an official word out of Washington that the M.C.C. board would be terminating the compact agreement with Belize, but to date we have not received any official word to this effect. In the meantime, Belize has expressed its concerns at every high level in the United States Government, and we have received assurances that the matter has been further examined to see if there is a possibility to retain the Belize program intact. We are therefore guardedly optimistic that the program will be retained. However, should the program indeed be terminated, we will be actively seeking alternates, alternate sources of funding from our development partners.”