On Sunday, a coup d'état was carried out against President Manuel Zelaya of Honduras by military and political forces hostile to his government. Heavily armed, hooded soldiers arrived at his residence at 5am and, after a scuffle with his security forces, kidnapped Zelaya and flew him to Costa Rica.

Later Sunday afternoon, the Honduran Congress convened an emergency session, where a letter of resignation, supposedly signed by Zelaya was read, and the previous head of Congress, Roberto Micheletti, was sworn in as the new President. Most of Zelaya's Cabinet has been taken into custody, including Foreign Minister, Patricia Rodas, who was kidnapped by the military despite efforts on the part of Ambassadors from Cuba, Nicaragua and Venezuela to prevent her arrest.

On June 10, the US government announced that it will cancel the Millennium Challenge Corporation (MCC) program in Nicaragua. The United States suspended MCC funding for Nicaragua in December of 2008 citing concerns about electoral irregularities following elections in which the FSLN won a majority of municipalities. However, the June decision permanently cuts off funding. MCC chief executive officer, Rodney Bent, stated that Nicaragua was veering away from "good governance."

President Daniel Ortega in turn accused the United States of being "manipulative, intervening in Nicaraguan internal affairs" and saying that the aid was canceled because "we don't do what the yanqui wants."

 Nicaragua Network Hotline Reports:

On Apr. 22, during an appearance on the Cuban television program "Round Table," Nicaraguan President Daniel Ortega said that functionaries of the United States Embassy in Managua are conspiring against his government and that Nicaraguan officials have "all the information" about the conspiracy which they have not yet wanted to make public. "They class us as a dictatorship," he said adding that Embassy officials have been meeting with opposition figures and offering opposition groups funding to unite against his government, even while they maintain respectful relations with the government.