Belize faces major setback as $125 million MCC grant set to be terminated

Published by [email protected] at April 27, 2025

Posted: Sunday, April 27, 2025. 8:44 am CST.

By Horace Palacio: In a blow to Belize’s economic and educational ambitions, the $125 million grant signed with the Millennium Challenge Corporation (MCC) is now on the chopping block. Just months after Prime Minister John Briceño and MCC CEO Alice Albright celebrated the deal in September 2024, the U.S. government, under President Trump’s administration, announced plans to dismantle the MCC as part of sweeping cost-cutting measures.

The MCC grant was intended to fund transformative projects across Belize’s energy and education sectors, including initiatives to train high school graduates in modern skills and bring down electricity costs through renewable energy investments. The cancellation comes as the Department of Government Efficiency (DOGE) confirmed last week that MCC’s 320 employees have been offered early retirement or deferred resignation, with a 90-day timeline for winding down all operations.

The sudden move leaves Belize scrambling for alternatives. Critics are questioning whether the government was too quick to trust U.S. commitments, especially after bending to international pressures on other economic fronts. Cane farmers, in particular, have voiced frustration, suggesting that appeasement toward American interests has backfired spectacularly.

With the Millennium Challenge Corporation’s dismantling affecting more than 20 developing countries worldwide, Belize now joins a growing list of nations left to reassess their development strategies. For many Belizeans, this is not just about the loss of funding — it’s about the loss of trust in powerful allies.

Government officials have not yet announced a contingency plan. However, political observers predict that the Briceño administration will face growing pressure to diversify Belize’s international partnerships and lessen reliance on volatile foreign funding streams.

Advertise with the mоѕt vіѕіtеd nеwѕ ѕіtе іn Belize ~ We offer fully customizable and flexible digital marketing packages. Your content is delivered instantly to thousands of users in Belize and abroad! Contact us at mаrkеtіng@brеаkіngbеlіzеnеwѕ.соm or call us at 501-612-0315.