US govt cancels federalism fund in Nepal

Kathmandu: The US government has canceled with immediate effect the fiscal federalism fund in Nepal, which is likely to imperil the execution of federalism in the country.

A notification issued by the Department of Government Efficiency (DOGE), led by Elon Musk, today said U.S Taxpayer dollars towards the subject have been canceled.

According to it, 20 million US dollars for ‘fiscal federalism’ and another 19 million for
‘Biodiversity conservation ‘ has been canceled in Nepal.

The department has also canceled another 2.7 million dollars meant for effective measures in the ‘promotion of Gender Equality, disabled persons, LGBTI and ethnic groups in Nepal and long term strategic direction of these programs.’

The immediate cancellation of these projects comes within days of the declaration of intent by Trump’s government. This will likely directly and adversely impact the success of the agenda of federalism, along with secularism and republic, 2006 onwards.