The 5 largest DAC providers accounted for most of the decline
Germany, the United States, the United Kingdom, Japan and France (ranked by ODA volume) accounted for 95.7% of the total decline in ODA. The United States alone drove three-quarters of the decline, with its ODA falling by 56.9% compared to 2024. This is the largest reduction in volume by any provider in any year on record. In 2025, Germany was the largest DAC provider of ODA for the first time in history, with its ODA totalling USD 29.1 billion. Eight DAC members increased their ODA.
Cuts hit bilateral aid and UN funding hardest
Bilateral ODA fell by 26.4% to USD 126.4 billion, while multilateral ODA declined by 12.7% to USD 47.9 billion. Within bilateral ODA, grants recorded a much sharper decrease (-29.1%) than loans (-10.3%). For multilateral ODA, which fell for the second year in a row, declines were concentrated in core contributions to the UN system at -27%, the largest annual drop on record. In contrast, contributions to the World Bank and regional development banks increased.
Non-DAC countries were substantial providers of ODA
Twelve official providers that are not members of the DAC reported a total of USD 13.3 billion in ODA, reflecting sustained engagement in development co-operation.
Bilateral aid to development programming faced a historic decline
ODA to development programmes, projects and technical co-operation (excluding in-donor refugee costs, humanitarian aid and debt relief) declined by 26.3%, the largest drop on record for this component. These flows have been resilient over time, increasing by 24.2% from 2019 to 2023. The significant decline in 2025 suggests that cuts have extended beyond components of aid that typically fluctuate from year to year, such as in-donor refugee costs and humanitarian aid.
Humanitarian ODA from DAC countries fell 35.8% to USD 15.5 billion, the second consecutive fall after five years of growth (2019-2023). ODA for in-donor refugee costs decreased by 22.1% over 2024 and remained stable as a share of total ODA (13.2% compared to 13.0% in 2024).
Bilateral ODA declined for Ukraine, sub-Saharan Africa and least developed countries
DAC countries’ net bilateral ODA to Ukraine fell by 38.2% in 2025 to reach USD 10.3 billion, driven by the decline in US support, despite 23 countries increasing their bilateral ODA to Ukraine. Bilateral ODA to least developed countries (LDCs) and sub-Saharan Africa also fell by 25.8% and 26.3% respectively.
In recent years, these bilateral declines were partly offset by increases in concessional financing from multilateral organisations. However, with multilateral ODA falling for two consecutive years, it is uncertain whether this trend will hold in 2025. The final data, published in December 2026, will allow a fuller assessment.
When outflows from EU Institutions are included, Ukraine received USD 44.9 billion, an 18.7% increase over 2024 and the largest volume of net ODA to any single recipient in any year on record. This amount was larger than DAC members’ combined bilateral ODA to all LDCs (USD 28.1 billion) and all countries in sub-Saharan Africa (USD 29.2 billion).
The outlook of ODA suggests further cuts
ODA rose 32.7% from 2019 to 2023, driven by DAC members’ response to the COVID‑19 pandemic and to Russia’s war of aggression against Ukraine. That growth has since reversed. ODA fell by 6.1% in 2024 and 23.1% in 2025 amid mounting political and fiscal pressures, bringing it to 4.2% below 2019 levels.
These reversals raise concerns about developing countries’ fiscal space, and about the efficiency and catalytic potential of the remaining ODA. Projections suggest a further 5.8% drop in DAC ODA in 2026, not yet accounting for additional strain from the current crisis in the Middle East.
