In September 2024, the Government of Belize (GOB) and the Millennium Challenge Corporation (MCC), a United States government agency, announced the signing of a five-year, $125 million grant agreement to invest in education and energy in the country. Fast-forward to April 2025, with a new American administration in place, the MCC has reportedly been shut down, leading to the cancellation of the multimillion-dollar grant.
According to reports, GOB was informed of the funding cancellation on Wednesday, April 23rd. This decision is believed to be devastating for Prime Minister Honorable Dr. John Briceno’s administration, which had been planning to enhance the country’s education and energy sectors. Just last month, the Prime Minister expressed optimism regarding the potential for the funding to be temporarily frozen by the administration of U.S. President Donald Trump.
In a March 26th interview with the media, Briceno said that everything was on pause. “Remember the US government put all of that on pause and they are reviewing it,” he said then. “So MCC is on pause for the time being. When we speak with the officials here at the US Embassy, they are very hopeful that it will proceed, and so do I.” That is not the case now after the grant cancellation. However, Briceno had commented that if that funding did not come through, his government would still run the Ministry of Education adequately. “We are going to be fine,” he told reporters.
The GOB has yet to issue an official statement on the matter following the recent developments within the MCC agency.
The grant investment in the education project aimed to increase the number of post-primary graduates equipped with competencies relevant to current and anticipated labor market demands. The program was designed to enhance access to and progression through secondary education, as well as to strengthen the legal and institutional framework for Technical and Vocational Education and Training (TVET). In the energy sector, the plan focused on reducing electricity costs by facilitating new power purchase agreements for lower-cost renewable energy. This initiative was expected to modernize the power grid, allowing it to efficiently manage an influx of variable power generation.
Established in 2004, the Millennium Challenge Corporation has partnered with over forty developing countries and has developed a reputation as the world’s most transparent bilateral agency. It currently manages $5.4 billion in active grants across 20 lower-income countries. However, this foreign policy appears to no longer be a priority for the current U.S. administration. Reports indicate that more than 320 MCC employees will reportedly be offered a voluntary early retirement and a deferred resignation program. Regarding the grants, the agency’s board is set to draft a resolution to terminate them worldwide within the next several months.
