Scoop: Elon Musk’s DOGE takes aim at Millennium Challenge Corporation
While the exact future is uncertain, staff and programs will be cut, maybe nearly entirely, sources say.
By Adva Saldinger // 23 April 2025The Millennium Challenge Corporation — a U.S. development agency — may be next on the Trump administration’s chopping block. Staffers received an email on Tuesday that said: “While the Foreign Assistance Review has not yet concluded, we understand from the DOGE team there will soon be a significant reduction in the number of MCC’s programs and relatedly the agency’s staff.” DOGE refers to the Department of Government Efficiency, which is run by billionaire Elon Musk and is behind the shuttering of the U.S. Agency for International Development, once a $40-billion-per-year agency that employed over 10,000 people worldwide. While the extent of MCC cuts wasn’t detailed in the email, there is uncertainty about the future of the agency, and rumors swirled on Wednesday that it could be effectively shuttered, several sources tell Devex. The agency has invested nearly $17 billion in 47 countries in the past 20 years, aimed at improving economic growth. It has an annual budget of about $900 million. The email from acting MCC CEO Gina Spiro, which was seen by Devex, offered staffers options for early retirement or a deferred resignation program. Those who take the deferred resignation will be placed on leave with full pay and benefits through Sept. 30, “or an earlier date on which the employee chooses to resign or otherwise separate from federal service,” the email said. Those taking early retirement would also leave by Sept. 30 in most cases. Staff have until 5 p.m. ET on Tuesday, April 29, to “opt in” and will be placed on administrative leave as soon as May 5. The agency has about 300 staff members. Many had thought that MCC, which was created by former President George Bush, a Republican, would survive the Trump administration’s gutting of foreign aid. The 20-year-old agency has typically enjoyed bipartisan support in Congress, which just last year approved an expansion of the countries where it can work. It has traditionally been focused on low- and lower-middle-income countries, though it gained authority to invest in higher-income countries, too. MCC works with countries that meet a set of clear governance criteria and provides large grants targeted at addressing key economic constraints, often in exchange for countries making certain policy changes. It has also positioned itself, especially in recent years, as a tool to counter Chinese influence. It emphasizes measurable outcomes and accountability, using a scorecard system to evaluate countries based on 20 indicators — including corruption, political rights, and civil liberties — to determine eligibility for MCC funding. And it hasn’t shied away from canceling grants when countries fail to meet its policy requirements. Staff were told at internal meetings on Wednesday that MCC will be cancelling all contracts starting the next day, though some ongoing programs would have either three or four months to wind down, an employee who requested anonymity because they did not have permission to speak to the media told Devex. Some contracts had already received stop-work notices earlier this year. Any MCC compacts or grant agreements that were signed but weren’t yet being implemented would be stopped immediately, staff were told. The decision came as a surprise to senior leadership, who seemed rattled and told staff that they fought as hard as they could but were told the agency was not aligned with Trump administration policy, the employee said, adding that there were a lot of tears at the agency today. While it may not be a done deal, staff were told not to expect a Hail Mary, the employee said. That aligns with rumors Wednesday that DOGE had told MCC leadership to essentially wind down all of the compacts, or grant agreements at the agency, except a few that are close to ending, which could continue for a few months, several sources with knowledge of internal conversations told Devex. The agency may be reduced to a bare minimum — by statute, MCC only has to have a CEO and a board chair, sources said. DOGE may be drafting a resolution for MCC’s board, which is chaired by Secretary of State Marco Rubio, several sources said. A board meeting has not been set but could be called soon, sources added. Nothing about these changes is in writing yet, and it’s not entirely clear if Rubio has weighed in, but more clarity should emerge in the next couple of days, sources tell Devex.
The Millennium Challenge Corporation — a U.S. development agency — may be next on the Trump administration’s chopping block.
Staffers received an email on Tuesday that said: “While the Foreign Assistance Review has not yet concluded, we understand from the DOGE team there will soon be a significant reduction in the number of MCC’s programs and relatedly the agency’s staff.” DOGE refers to the Department of Government Efficiency, which is run by billionaire Elon Musk and is behind the shuttering of the U.S. Agency for International Development, once a $40-billion-per-year agency that employed over 10,000 people worldwide.
While the extent of MCC cuts wasn’t detailed in the email, there is uncertainty about the future of the agency, and rumors swirled on Wednesday that it could be effectively shuttered, several sources tell Devex. The agency has invested nearly $17 billion in 47 countries in the past 20 years, aimed at improving economic growth. It has an annual budget of about $900 million.
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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.