MONTROVIA – Just a few months after President Joseph Nyma Boachey announced Liberia’s eligibility for the second Millennium Challenge Corporation (MCC) compact worth up to $500 million, the political science report cast a looming shadow on its hard-earned victory. A report released Tuesday reveals that MCC has been shut down by US Government Efficiency (DOGE), led by Elon Musk, casting serious suspicions on Liberia’s expected infrastructure and development lifeline.
MCC announced its 2025 scorecard on November 21, 2024, assessing 76 countries for their eligibility to develop a five-year grant agreement known as the Compact. Of the 76 countries evaluated, 26 countries, including Liberia, passed. Scorecards measure performance across 20 independent indicators that are classified as economic freedom, dominate rightly, and invest in people.
Countries that have struggled to pass the MCC’s 2025 scorecard (including tough benchmarks on corruption and democratic rights) have not yet been news from Washington. After years of policy re-calibration, institutional reform and targeted investments in excellent governance, Liberia now finds herself staring at the potential to lose one of its most important foreign aid packages to date.
From Boakai’s proudest to MCC’s uncertain future
In December 2024, President Boachey described the qualifications for the MCC as “a victory for all Liberians.” The government has cleared key hurdles regarding transparency, civil liberty and gender inclusion and has achieved its position among 26 countries eligible for the compact. The $350-$500 million grant promise has brought hope to rebuild critical infrastructure, expanding electricity access and stimulating economic growth.
Finance Minister Augustine Kpehe Ngafuan continued his successive high-level engagement, including virtual discussions with MCC vice president Kyeh Kim and managing director Jason Small. Ngafuan praised the internal government task force to track the MCC’s strict indicators and promised the timely completion of the constraint analysis needed to guide the compact allocation.
However, all these efforts could be elucidated if Doge continues its reported plan to shut down the MCC, freeze all existing compacts, and send 320 staff. Agents who have consistently achieved high marks for transparency and performance are victims of Doge’s broader campaign to dismantle foreign aid mechanisms under the guise of efficiency.
Dodge’s movements make sense for Liberia
Liberia’s interests are enormous. The MCC Compact is about reliability, reform and global position. It rewards countries that show real progress in democracy, anti-corruption, and human development. In Liberia, the Compact II was set up for bankroll roads, power and governance reforms. If the MCC is closed, Liberia will lose more than funds. Lose important links to Washington and key tools to advance diplomacy. The driving force of finance minister Ngafuan to revive US-Liberia political dialogue could collapse along with it.
Suddenly suspicious timeline
So far, the roadmap has been clear. A technical delegation from the MCC visited Monrovia in January to complete staffing, carry out diagnostics and prepare to set up a national office. Jason Small, who led the team, assured of his commitment to Liberians to change their lives and work with local stakeholders. Plans for a follow-up visit by Vice President Kim were already in motion.
However, Politico’s report is a tough picture. An internal MCC email obtained by the outlet indicates that Doge will present a resolution to the MCC board as soon as possible. It will be chaired by US Secretary of State Marcorbio and Treasury Secretary Scott Bessent, and will begin termination of the grant program within 90 days. Liberia’s Compact II is still in the preliminary stage and will not reach the implementation stage if x is about to fall.
Political victims of reductions in foreign aid
This shutdown doesn’t seem to be rooted in MCC’s performance. “Our agency has been undergoing clean audits for over the past decade,” an MCC employee told Politico. “The reason we are closed has nothing to do with waste or corruption, according to Doge.”
Under Musk’s leadership, Doge systematically targets foreign aid agencies and reflects Trump-era skepticism about international development spending. The fact that perhaps the most transparency and outcome oriented MCC of American aid agencies is being dismantled is not a performance-based rationale, but rather a change in ideology.
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The ideological purge now threatens Liberia’s development trajectory.
Political Fallout and National Frustration
Idaho Sen. Jim Rich introduced the law last December to expand the powers of the MCC. But it remains unclear whether Congress will act quickly enough to override Doge’s plans, especially given Tesla’s poor income report, which could potentially plunge into even more uncertainty.
There’s no time to be satisfied
Liberia’s happiness over MCC approval was already mitigated by warning notes on the scorecard. The country continues to suffer a decline in health, education and fiscal governance performance. These systemic weaknesses were flagged as areas that require immediate attention if the compact produces transformative results.
The work must continue with or without MCC.
“Election year is when politicians win, but the people of Liberians need to win every year,” Minister Ngafuan correctly pointed out in January. But now, one of the nation’s biggest expected victories is at stake, so it’s the Liberians who will lose.
