Trump Admin Moves to Close MCC, Citing Gov’t Reforms

The Millennium Challenge Corporation (MCC), an international aid agency that works with more than four dozen developing countries to promote economic growth, is being shut down by the U.S. Department of Government Efficiency (DOGE), according to an email sent to employees Tuesday, CE Report quotes Kosova Press.

"We understand from the DOGE team that there will soon be a significant reduction in the number of MCC projects and consequently the agency's staff," the interim CEO wrote in an email.

Created by Congress in 2004 during the George W. Bush administration, MCC has enjoyed bipartisan support for years and is ranked by the aid transparency group Publish What You Fund as the most transparent bilateral agency in the world. MCC, which is independent of the State Department, currently has over $5.4 billion in active grants in 20 low-income countries that are either signed or in the process of being implemented. DOGE’s targeting of the bipartisan agency adds to the Trump administration’s attacks on international aid groups.

The agency, which has more than 320 employees, will offer employees the option of voluntary early retirement and a deferred resignation program for those who qualify, according to the email. Those interested in the option are asked to send an email with the subject line “Request to enroll: [DRP/VERA]” by the end of the day on April 29. Some employees may also be placed on administrative leave starting May 5, but the exact timing is unclear, according to the email.

In an all-staff meeting held Wednesday morning, executives told employees that DOGE will draft a resolution next week for the agency’s board — which includes Secretary of State Marco Rubio, Treasury Secretary Scott Bessent, Special Envoy for Trade Jamieson Greer, the interim CEO and four private sector members — to end grants worldwide within the next few months, according to a participant who was granted anonymity to discuss internal meetings. (The interim CEO’s name was not included in a screenshot of the email that POLITICO reviewed.)

An employee, who was granted anonymity due to fear of retaliation, said the expectation is that within 90 days, all MCC operations will be closed.

"Our agency has had clean audits for over 10 years, and the reason we are closing, even according to the people from DOGE, has nothing to do with the fact that our agency is wasteful or corrupt," the person said.

In December, Senator Jim Risch (R-Idaho) sponsored and introduced legislation in support of the group, which would have expanded the MCC's authority to collaborate with a wider range of states.

The announcement to all staff came after a series of meetings between DOGE employees Justin Fox and Nate Cavanaugh and MCC senior leadership that took place over the past two weeks.

A DOGE representative did not respond to a request for comment, POLITICO reports.

The impending closure of MCC also comes after DOGE leader Elon Musk said on Tuesday that his days at the agency will soon be over due to Tesla’s weak first-quarter earnings reports. But it does suggest that DOGE won’t necessarily slow down the destruction of agencies even after Musk’s departure.

MCC has requested exceptions for several countries that have active grants, including Côte d'Ivoire, which has requested a four-month period for closure, and Mongolia, Senegal and Nepal, which have requested three-month periods for closure, according to the meeting participant.

“We have always been praised as the model government agency that was efficient, effective and transparent,” said an MCC employee.

But it is clear that international aid is not a priority for this administration.

Former Prime Minister of Kosovo, Avdullah Hoti, has said that Kosovo is among the countries that will suffer the most from the closure of the Millennium Challenge Corporation (MCC).

He said that the rejection of the Washington Agreement of September 4, 2020 made the construction of the gas-fired power plant impossible.

"Now that the MCC is also being closed as part of the reform of the American Administration by President Trump, Kosovo will also lose the amount of 220 million dollars for the purchase of energy storage batteries. Along with these, many other related projects that directly affect the well-being of citizens," Hoti wrote on Facebook.

Further in his reaction, he said that "This is what happens when the breadwinners govern, who, ignoring the Washington Agreement, refused partnership with the USA - the state that is primarily responsible for the existence of a free and independent Kosovo. They also refused to suspend import tariffs on American products. This government is working against our strategic interests."