OECD Reports Historic 23 Percent Drop in Global Foreign Aid

Official development assistance from member countries of the Organisation for Economic Co-operation and Development fell by 23.1 percent in 2025, dropping from $214.6 billion to $174.3 billion. This represents the largest annual contraction in the history of the organization's data. The decline was driven by the five largest donors—the United States, Germany, Japan, France, and the United Kingdom—who together accounted for nearly 96 percent of the total drop.

Donald Trump drove three-quarters of the global decline after the United States reduced its aid by nearly 57 percent, a reduction of approximately $37 billion. As part of an "America First" agenda, the administration dissolved the United States Agency for International Development (USAID) and slashed bilateral aid to Ukraine by 91.1 percent and United Nations budget contributions by 87.2 percent. Consequently, Germany became the world's largest aid provider for the first time, despite cutting its own budget by 17.4 percent. Other nations also reduced spending; the United Kingdom cut over £1 billion to fund defense spending, while New Zealand reduced its aid by 12.8 percent.

Humanitarian organizations and researchers warn of lethal consequences. The Institute of Global Health of Barcelona estimates that 2025 cuts could cause nearly 700,000 excess deaths, with total preventable deaths potentially exceeding 9 million by 2030. Oxfam and The Rockefeller Foundation have called on wealthy governments to restore budgets, suggesting the taxation of wealth in tax havens as a funding source and urging the adoption of new development models to replace the failing consensus on international aid.