Overview
- The OECD, which released preliminary figures Thursday, said official development assistance fell 23% in real terms to $174.3 billion in 2025, the largest annual drop on record and the second straight yearly decline.
- The United States accounted for roughly three-quarters of the fall after cutting aid by 56.9%, which left Germany as the largest donor for the first time.
- Funding shifted away from direct projects as bilateral development grants dropped much more than loans, and support routed through multilateral institutions declined less sharply.
- EU institutions increased support to Ukraine to $44.9 billion, a record for any single recipient and larger than DAC members’ combined bilateral aid to least developed countries and to sub-Saharan Africa.
- The OECD projects a further 5.8% decline in 2026, and aid groups such as Oxfam warn the cuts will cost lives, citing an estimate from the Institute of Global Health that sustained reductions could lead to millions of additional deaths by 2030.