Liberia had recently qualified for a second MCC compact — its first since 2015.
Monrovia – Liberia’s anticipated $500 million development grant from the U.S. Government’s Millennium Challenge Corporation (MCC) is under serious threat following reports that the aid agency may soon be shut down, potentially terminating all ongoing and future grants, including Liberia’s.
By Selma Lomax, [email protected]
According to a report first published by POLITICO and corroborated by other international outlets, the MCC is being targeted for closure by the U.S. Department of Government Efficiency (DOGE), with internal emails and staff briefings indicating that program reductions and staff departures are imminent. The move could effectively end MCC’s operations within 90 days.
Liberia had recently qualified for a second MCC compact — its first since 2015 — following strong governance reforms and improved performance on the MCC Scorecard.
President Joseph Boakai announced in December 2024 that Liberia had passed the required indicators and received confirmation of its eligibility from Washington, D.C.
“Liberia has qualified for a second compact due to our outstanding performance in governance and reform,” President Boakai said at the time. “This achievement will unlock significant resources for our development agenda and help address the binding constraints to growth in our country.”
The compact, expected to deliver up to $500 million in U.S. aid, was seen as a major victory for the Boakai administration and a vote of confidence from the U.S. government. Liberia met key benchmarks in rule of law, trade policy, and fiscal management —surpassing the minimum requirement of 10 out of 20 performance indicators.
However, these hopes have been thrown into uncertainty amid reports that the MCC’s board, led by high-profile U.S. officials including Secretary of State Marco Rubio and Treasury Secretary Scott Bessent, may move as early as next week to dissolve the agency’s programs worldwide.
The staff-wide communication obtained by POLITICO also detailed plans for voluntary early retirements and administrative leave for employees.
Despite the MCC’s reputation as one of the most transparent and efficient aid agencies — consistently receiving praise from watchdog groups — the DOGE’s move appears to be part of a broader push by the Trump administration to downsize or dismantle foreign aid institutions.
One MCC employee, speaking anonymously to POLITICO, lamented the closure, noting the agency’s clean financial track record and its effectiveness in promoting economic growth in developing countries. “The reason we’re being closed, even according to DOGE, has nothing to do with our agency being wasteful or corrupt,” the employee said.
The Liberian government has not yet issued an official response to the developments. The potential loss of the MCC compact would deal a major blow to the country’s economic and development agenda, including the implementation of the National Development Plan (Arrest Agenda for Inclusive Development – AAID).
As the situation unfolds, Liberia—along with several other low-income countries—faces the real possibility of losing access to one of the most impactful sources of bilateral U.S. aid.
