Monrovia, Liberia–The Trump administration is preparing to shut down the Millennium Challenge Corporation (MCC), a major U.S. foreign aid agency that has supported economic growth and development in over 50 countries. This decision, revealed in an internal email obtained by POLITICO, has triggered alarm in developing nations, including Liberia, which now stands to lose more than $500 million in planned and ongoing projects.
According to the email from the MCC’s acting CEO, the U.S. Department of Government Efficiency (DOGE) is spearheading the closure effort as part of a broader cost-cutting initiative. Liberia, which has benefited from two MCC compacts since 2010, is now bracing for the fallout.
The first compact, valued at $257 million, focused on rehabilitating key infrastructure, including the Mount Coffee Hydropower Plant. A second compact worth over $300 million had been under discussion, with proposed priorities ranging from road connectivity and digital governance to energy expansion.
The MCC’s exit could prove disastrous for Liberia’s economy, where foreign direct investment and development aid play a central role in growth and poverty reduction. Analysts warn that halting MCC support will not only stall key infrastructure projects but also shake investor confidence at a critical time in the country’s recovery.
The Boakai administration has not yet issued an official response, but high-ranking officials within the Ministry of Finance and Development Planning have reportedly expressed shock and concern over the news. Opposition leaders in Liberia, including former President George Weah, have also weighed in. In a brief statement issued Wednesday, Weah called on President Boakai to engage Washington through diplomatic channels. As of now, MCC staff and partner countries remain in a state of uncertainty. If finalized, the shutdown could take effect within the next few months, unless reversed by Congressional action. For Liberia, already struggling under economic strain, the loss of MCC funding could mark a major setback in its journey toward sustainable development and self-reliance
