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Global Development Aid Plunges 23% as U.S. Cuts Reshape Donor Landscape

The OECD says the slump threatens lifesaving relief during crises.

Overview

  • OECD data, released Thursday, show official development assistance—government aid from rich countries to poorer ones—fell 23.1% in 2025 to $174.3 billion.
  • The United States drove roughly three-quarters of the drop after President Trump’s team slashed aid and shut down USAID, and together with Germany, France, Japan and the UK accounted for about 96% of the global reduction.
  • Germany became the largest donor by dollars at about $29.1 billion, yet its aid equaled 0.56% of national income, or 0.46% once domestic refugee reception costs are excluded.
  • Humanitarian funding fell by more than one third, and contributions to international organizations, especially the United Nations, also declined.
  • The OECD projects another 5.8% fall in 2026, which could force cuts to programs that fight hunger, support displaced people and keep basic services running in low-income countries.