Government Working to Salvage $125 Million US Grant From MCC

The Government of Belize continues to work on salvaging the multi-million-dollar grant from the Millennium Challenge Corporation (MCC). Back in September 2024, GOB and the MCC signed off on a compact to start a five-year project funded by a 125 million US dollar grant from the MCC and 40 million US in counterpart funding from the government. The funds were earmarked for development in areas such as education and the energy sector. However, the US saw a change in administration this year, and as part of President Donald Trump’s America First policies, the funds were cancelled. Minister of Foreign Affairs Francis Fonseca says that, despite the setback, all is not lost, and that the agreement could still proceed, albeit with some changes.

Francis Fonseca, Minister of Foreign Affairs: “Not at all. You know the US government has indicated to us that it’s under review and that there’s an opportunity for us to continue. There may be a need to amend some of the terms of the compacts that we have signed but it looks very promising that we will be able to preserve MCC grant but there will have to be adjustment to some of the terms. We work, that was an important topic for discussion in Washington with everyone we met and I think that is already yielding positive results.”

The funds were cancelled as part of the US Department of Government Efficiency (DOGE’s) efforts to reduce international aid and funding