(Ecofin Agency) - • The Trump administration has decided to close the Millennium Challenge Corporation, one of the main U.S. tools for development aid.
• All ongoing programs are expected to stop, and partner countries will be formally notified within 40 days.
• The move signals a broader U.S. withdrawal from global cooperation efforts, creating room for rival powers like China to expand their influence.

The Trump administration has decided to shut down the Millennium Challenge Corporation (MCC), a major U.S. agency that provided large-scale development funding to low-income countries, especially in Africa. The decision, not yet publicly announced by the White House, was confirmed by several sources familiar with the matter. Staff at the MCC were informed of the move during an internal meeting on April 23, according to The New York Times.

A source within the agency said that “all ongoing programs will be stopped,” and partner governments are expected to receive official notice within the next 40 days. The closure is part of a sweeping government reorganization led by the new Commission for Government Efficiency (DOGE), created by the Trump administration and headed by Elon Musk. An internal memo also mentioned widespread layoffs and a gradual shutdown of the agency’s operations.

The MCC was launched in 2004 under President George W. Bush and became a cornerstone of what the U.S. called its “smart aid” approach. It focused on funding major infrastructure and economic projects — roads, irrigation systems, rural electrification — in countries that met strict standards for democratic governance, economic transparency, and anti-corruption efforts.

Since its creation, the MCC has invested nearly $17 billion across the world, with a strong footprint in Africa. Four countries will receive extended transition periods, including Côte d’Ivoire, where the MCC is funding a major urban transport project in Abidjan, and Senegal, which is implementing an energy sector program known as the Power Compact.

This shutdown adds to the growing signs of U.S. disengagement from global development work. Earlier this year, the Trump administration suspended many operations of USAID, the country’s largest development agency. While the MCC had a much smaller annual budget — around $1 billion, roughly 1/50th that of USAID — its impact was widely seen as strategic, offering an alternative to looser forms of international aid.

The end of the MCC could create a gap that other global players, especially China, may be quick to fill. For years, Beijing has been investing heavily in African infrastructure with fewer political conditions than Washington required.

This move highlights a broader shift in U.S. foreign policy: a turn inward, focused more on short-term national interests and less on long-term global influence. For many African governments, the end of MCC funding may force a rethink of how they manage international partnerships — and who they turn to next.