The U.S. Agency for International Development (USAID) has left behind hundreds of vehicles at the Chobhar Dry Port in Kathmandu following the closure of its Nepal office.
According to Ashish Gajurel, Executive Director of the Nepal Intermodal Transport Development Committee, a total of 518 vehicles, including four-wheelers and motorcycles, belonging to USAID have been stored at the facility.
Out of the 518, there are 118 vehicles such as SUVs, pickup vans, and jeeps, along with 400 motorcycles. The Nepalese authority is currently charging a designated parking fee to USAID for the storage of these vehicles.
This development follows the closure of the USAID office in Nepal earlier this year. The shutdown was prompted by an executive order issued by U.S. President Donald Trump on January 20, 2025, which froze most U.S. foreign assistance programs, including those administered by USAID.
Why the U.S. Halted USAID
On his first day back in office, President Trump signed an executive order calling for an immediate freeze on U.S. foreign aid, including most USAID-funded operations.
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The order aimed to reassess how foreign aid aligns with U.S. national interests and scrutinize the effectiveness of past expenditures. Secretary of State Marco Rubio echoed this stance, stating that many projects were ineffective or misaligned with U.S. priorities. Tech magnate Elon Musk, serving in an advisory capacity, controversially labeled USAID a “criminal organization,” underscoring the administration’s aggressive tone toward the agency.
Economic Impact on Recipient Countries
The shutdown has already sent shockwaves through countries dependent on U.S. foreign aid. Approximately 83% of USAID-funded projects have been suspended or canceled. This has had severe effects, especially in low- and lower-middle-income nations like Nepal, where the funding supported key sectors such as healthcare, agriculture, education, and governance.
In Nepal, numerous NGOs and development partners have seen their projects abruptly halted, leaving thousands without services or employment. National-level initiatives aimed at rural health, school construction, literacy, and food security are now in limbo.
Globally, USAID’s halt is expected to affect over $35 billion in annual aid, disrupting progress in public health, economic development, and humanitarian support.
Broader Macroeconomic and Geopolitical Consequences
In 23 countries, the USAID freeze is expected to reduce Gross National Income (GNI) by over 1%, and in at least 8 countries, by 3% or more.
The cut could result in a 1% dip in Nepal’s GNI, with vital sectors like health, agriculture, and education hardest hit.
As the U.S. retracts from its role as the world’s largest bilateral donor, countries like Germany, Canada, Japan, and even China and Russia may step in to fill the vacuum, potentially reshaping the global aid landscape.
While CAN’s closure of USAID’s office is symbolic of a larger geopolitical shift, the implications on the ground are more direct and devastating. Thousands of rural communities that relied on USAID-backed health posts, agricultural extension services, and education programs now face deep uncertainty.
Nepalese officials have acknowledged the challenge and urged international donors to step in. However, the road to replacing U.S. aid, both in scale and effectiveness, remains long and unclear.
The storage of hundreds of USAID vehicles at the Chobhar Dry Port is more than a logistical detail it is a visible marker of a larger disruption.
The Trump administration’s freeze on foreign aid, justified under a banner of realignment and fiscal scrutiny, has left a lasting impact on nations like Nepal. Without swift intervention from other global donors, the decision threatens to unravel decades of development progress, deepen humanitarian crises, and reshape the very architecture of international aid.
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