The world's wealthiest nations are reducing foreign aid at an unprecedented rate, according to a recent study. In 2025, Official Development Assistance (ODA) fell by 23.1% to just over €149 billion.
The United States, under President Donald Trump, spearheaded these cuts, slashing its aid budget by a remarkable 57%. This significant reduction, alongside cuts from other major donors including France, Germany, Japan, and the UK, accounted for 96% of the global shortfall.
Following these changes, Germany emerged as the largest ODA funder in 2025, contributing €24.89 billion. The US is now second with €24.77 billion, followed by EU institutions and the UK.
Experts cite factors such as increased spending on in-donor refugee costs and support for Ukraine as contributing to the decline, although deeper trends suggest development cooperation is becoming less central to national policy. Governments face tight public finances, slower growth, and rising domestic spending needs, often leading to reductions in development budgets.
Despite the global trend, Spain and Hungary were notable exceptions, increasing their aid contributions significantly. However, the overall reduction raises concerns about the EU's capacity to maintain long-term international partnerships and address global challenges.