The United States suspended all aid programs in Nepal after the Maoists entered the interim parliament. The Maoists are still on the Americans' terrorist list. On 18 January, four days after the interim parliament was convened, USAID wrote to the government and NGOs informing them of the suspension. US officials told Abhiyan that when the Maoists enter the government, additional curbs would be announced. The letter says: "Since the Maoists are now in parliament, you may not provide services or assistance to any ministry, agency, commission, department, court, local government, or other institution of the government of Nepal."

The letter says it is expecting further clarification from the US government about the definition of 'services and assistance'. The agency has verbally warned its partners that if they have any dealings with the Maoists, future aid could be suspended. The $5.6 million ARD Rule of Law Project is now in limbo, as are support for Transparency International, the Law Society, Sawtee, and Rimek. "We never imagined that activities would be terminated even before they are completed," said a CIAA official. US assistance had not been suspended even when other European donors stopped aid to protest King Gyanendra's takeover. Aid suspension will also affect the National Democratic Institute which had been helping the political parties and the parliament secretariat.