The Organization for Economic Cooperation and Development (OECD) reported a severe decline in international aid from member countries of the Development Assistance Committee (DAC): aid fell by 23.1% in real terms compared to 2024, to the lowest levels since 2015.
This represents the largest dip in donations from DAC countries – the world’s richest nations – since records began. In another first-time phenomenon, all top five providers reduced input significantly. Additionally, the US is no longer the world’s biggest donor: the title now belongs to Germany, despite having decreased its own output.
To understand the severity of the situation, one only needs to compare the last peak of net ODA contributions in 2023 ($232.15 billion) with the current $174.3 billion estimated for 2025. The severe devaluation only confirms the devastating effects of the closure of the US Agency for International Development (USAID) and international tendencies to bring these funds home.
Overall Decrease Across the World
The United Nations (UN) set out a target of 0.7% of gross national income (GNI) to be spent on international development aid. Yet, only four countries – Denmark, Luxemburg, Norway, and Sweden – met this target. Total spending from all 34 members reached only $174.3 billion, roughly 0.26% of these countries’ GNI.
The OECD attributed almost 96% of the decline to the five largest DAC providers: Germany, the United Kingdom, the United States, Japan, and France.
Germany’s contribution brought a total of $29.09 billion, topping the list as contributing the most Official Development Aid (ODA) in USD, despite this representing a decrease to 0.56% of its GNI compared to the previous year, when it almost hit UN targets with an 0.68% contribution.
The German government understands the allocation of these funds as a security issue. “We are not withdrawing from any partner country,” emphasized Development Minister Reem Alabali Radovan. “At the same time, however, it is abundantly clear that we will not be able to close the gap left by the US on our own.”
The US’s ODA fell by 56.9% compared to 2024, which is the largest reduction volume by any provider ever recorded. This is a clear reflection of the second Trump administration’s policy to end international aid and spend the money at home under the ‘America First’ policy. USAID received a stop-work order in January 2025, followed by a pause on spending. By July, 83% of its programs had been cancelled, and previously approved spending was also rescinded.
The loss of such a massive organization rattled international non-governmental organizations too, as about half of the USAID’s funding was channeled through them.
The US alone accounts for three-quarters of the annual decline, making it the least generous country when measuring its offered aid against the size of its economy, donating only 0.09% of its GNI.
The US remains second in terms of contributions by USD billions with $28.95 billion. Though individual EU states mostly decreased aid, EU institutions came in third with $26.05 billion.
Whose Contribution Changed the Most Since 2024?
Only eight DAC countries, all of which are European, increased their ODA spending since last year. Hungary produced a 45.7% increase in contribution, by far the highest increase. However, Hungary’s total contribution remains nominally small with only $303.4 million.
Spain (10.7%) increased second-most, with Sweden (9.6%) following. Luxembourg (8.9%), Iceland (3.6%), Denmark (3%), and Norway (1.7%) also increased their contribution. Italy was the only one to maintain the level of contribution at 0.3% of its GNI with almost $7.3 billion.
What’s Next?
2025 was the second consecutive year ODA declined, but the largest annual contraction on record. ODA is now back to where it stood at the beginning of the 2030 Agenda for Sustainable Development in 2015.
The OECD projects the tendency will continue with a further 5.8% decline in 2026.
This year’s decline is already devastating for developing nations; further decline will lead to more impoverishment and deaths due to lack of food and healthcare. However, need will only increase.
“Wealthy governments are turning their backs on the lives of millions of women, men and children in the Global South with these severe aid cuts,” Oxfam’s Development Finance Lead Didier Jacobs said in a statement. “Governments must restore their aid budgets and shore up the global humanitarian system that faces its most serious crisis in decades.”
