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Global development aid suffered its steepest decline on record in 2025, according to preliminary data released Thursday by the Organisation for Economic Co-operation and Development (OECD). Total official development assistance from the 34 members of the OECD's Development Assistance Committee (DAC) fell by 23% in real terms to $174.3 billion, down from $214.6 billion the previous year—the largest annual drop since the OECD began tracking such data. The decline was driven overwhelmingly by the United States, which slashed its foreign aid spending by nearly 57%, a reduction that accounts for roughly three-quarters of the overall fall.
Coverage comparison
Reporting on the OECD data was largely consistent across major outlets. Al Jazeera, Deutsche Welle, and The Guardian all highlighted the 23% decline and the US role, though each brought distinct angles. Al Jazeera emphasized the impact on global development and humanitarian needs, quoting OECD official Carsten Staur as saying it was "deeply concerning to see this huge drop." Deutsche Welle framed the figures neutrally, noting that Germany became the largest donor for the first time in history and that the US is now the least generous donor relative to its economic size. The Guardian focused on the Trump administration's broader policy shift, reporting on a US initiative to promote a "trade over aid" declaration at the United Nations, which it described as an attack on wealthy nations' obligations to provide foreign assistance.
Key claims
All three outlets confirmed the following core statistics:
- International development aid from DAC members fell by 23% in real terms from 2024 to 2025.
- The US reduced its official development assistance by 56.9% in 2025.
- Total assistance for 2025 was $174.3 billion, down from $214.6 billion the year before.
- The US alone drove three-quarters of the overall decline.
- For the first time on record, all five of the OECD's top donors—Germany, the UK, Japan, France, and the US—reduced their contributions simultaneously.
Al Jazeera reported that only eight of the 34 DAC member countries maintained or increased their funding from 2024, a claim not mentioned in the other two sources.
Perspectives
The OECD data paints a stark picture of diminishing global aid capacity. As Al Jazeera reported, OECD officials warned that the decrease comes amid growing global uncertainty and extreme poverty. "We are in a time of increasing humanitarian needs," said Staur, pleading with DAC donors to reverse the trend.
The Guardian's reporting adds a political dimension, detailing a US-led initiative to shift the development paradigm. The outlet reported that the Trump administration has directed American diplomats worldwide to seek support for a "trade over aid" declaration, which would be introduced at the UN later this month, with the US mission expected to host a formal signing event. US officials, including State Department principal deputy spokesperson Tommy Pigott, framed the move as a rejection of what they called a "failed aid model," with Pigott asserting that "trade and free market capitalism is the surest path to prosperity." He dismissed critics who advocate "aid not trade" as "really arguing for lining the pockets of a corrupt NGO industrial complex."
This initiative is part of a broader dismantling of the US aid infrastructure, which Al Jazeera and other outlets have documented. As The Guardian noted, the administration has already eliminated the majority of USAID programs, and humanitarian aid is now vanishing globally.
The data and policy shift raise questions about the future of global development, with critics arguing that trade cannot substitute for aid in addressing the needs of the most vulnerable populations, while proponents say market-led growth offers a more sustainable path. The OECD's preliminary figures cover the 34 DAC members, which provide the vast majority of official development assistance worldwide.