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    • News
    • The future of US aid

    MCC shutdown would risk global trust, cede ground to China, experts warn

    DOGE told leadership the agency should prepare to wind down most programs, cut staff, but efforts are underway to try and prevent the demise of the Millennium Challenge Corporation.

    By Adva Saldinger // 29 April 2025

    Last week, the Millennium Challenge Corporation  — a U.S. aid agency focused on economic development — was informed by the Department of Government Efficiency, or DOGE, that it must rapidly wind down all operations, with significant staffing reductions. The fallout could be more than just abandoned infrastructure projects, it could lead to a major erosion of trust in the United States, experts told Devex.

    But that may not be final. Efforts are underway to save the agency, especially given speculation that Secretary of State Marco Rubio may not have been informed of the plan in advance, several sources told Devex on condition of anonymity due to the sensitivity of the information.

    It appears that various parts of the U.S. government were not aligned on MCC’s fate. The agency had recently received a fiscal year 2026 budget from the White House Office of Management and Budget — a sign of continued support that made the possible shutdown all the more surprising, several sources told Devex.

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    More reading:

    ► MCC in numbers: The grants, countries, and programs at stake (Pro)

    ► Scoop: Elon Musk’s DOGE takes aim at Millennium Challenge Corporation

    ► MCC bill nears approval, expanding country eligibility and oversight

    • Economic Development
    • Funding
    • Democracy, Human Rights & Governance
    • Trade & Policy
    • Institutional Development
    • Millennium Challenge Corporation (MCC)
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    About the author

    • Adva Saldinger

      Adva Saldinger@AdvaSal

      Adva Saldinger is a Senior Reporter at Devex where she covers development finance, as well as U.S. foreign aid policy. Adva explores the role the private sector and private capital play in development and authors the weekly Devex Invested newsletter bringing the latest news on the role of business and finance in addressing global challenges. A journalist with more than 10 years of experience, she has worked at several newspapers in the U.S. and lived in both Ghana and South Africa.

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