Belize Secures Restoration of $250M US Grant from MCC

The Government of Belize today confirmed that the country has secured the restoration of a major grant from the U.S. Millennium Challenge Corporation (MCC), a deal that had been jeopardized earlier this year. Minister of Foreign Affairs, Foreign Trade and Immigration, Francis Fonseca, stated that the multi-million-dollar compact, previously put on hold by the Trump Administration, will now proceed.  The grant agreement which was for 250 million US dollars was signed in September 2024 and earmarked to fund critical projects in the education and energy sectors. However, the compact came under threat after the new administration in Washington began to review, and in some cases, cancel, foreign aid programs as part of its “America First” policy. The move led to the reported dismantling of the MCC and a temporary halt to the Belize grant.  According to a previous statement from Prime Minister John Briceño, the government had continued to work on salvaging the grant, noting that the funds were never factored into the national budget, so their absence did not create an immediate financial crisis. However, the loss of the funding was seen as a significant setback for the country’s long-term development plans.  Foreign Minister Fonseca indicated that while the compact will move forward, there may be some “modifications” to the terms, but he does not anticipate any significant changes that would derail the core objectives of the projects, adding that the technical teams from both countries are currently working on finalizing the details. 

Francis Fonseca, Minister of Foreign Affairs: “The good news is that MCC will continue to but the technical teams, the MCC team is working along with our team here in Belize, Education and Energy and their team here in Belize to determine exactly what modifications will be made. We don’t expect any significant modifications but I really don’t want to get ahead of that discussion that’s taking place”

The grant, which is designed to reduce poverty through economic growth, will be supplemented by US$40.6 million in counterpart funding from the Government of Belize.  The restoration of the funding is a major diplomatic success for the Briceño administration, ensuring that key initiatives aimed at improving educational outcomes and lowering electricity costs can now be fully realized