Retreat from development aid continues as more governments announce funding cuts

Geneva, 11 March 2025 –  ILGA expressed concern today as more governments follow the pattern of drastically cutting foreign aid.

So far in 2025, in addition to the United States, the governments of the United Kingdom and the Netherlands announced severe decreases in their ODA (Official Development Assistance), using strong rhetoric while dropping their commitments towards marginalised communities.

Switzerland, Belgium, and France have also announced plans or initiatives to follow suit. The impact on communities at risk and on civil society will be devastating.

Since January 2025, the human rights, aid, and development sectors have been facing unprecedented and multiple budget cuts and freezes – with a systematic defunding of work supporting LGBTI people, women and girls, and vulnerable people living in conflict zones and humanitarian crises.  These are occurring at a time of a rise of harmful political narratives that target civil society and political participation, and create more space for democratic backsliding and decline in rule of law.

Across ILGA’s six regions, the impact has and continues to be far-reaching and devastating, particularly to those who rely on member organisations for support and services.  We have seen the closure of offices and reduction in staff and programs. In countries and communities in the global South that already struggle with systemic violence and discrimination, the financial hit amplifies and strengthens the movement against justice, rights and freedom.

Now, the United Kingdom will decrease spending on international development by 40% to only 0.3% of their GDP, to increase their defence expenses by a mere 10%.

The decision has been decried by UK International Development Minister Anneliese Dodds herself, who resigned over the prime minister’s cuts to the aid budget.

Meanwhile, the Netherlands will cut EUR 2.4 billion from 2027, claiming that “Dutch interests will take precedence”. Despite the majority of the Dutch Parliament has repeatedly expressed support for aid improving the health and equality of women, girls and LGBTI people, the Ministry’s policy letter on international development does not explicitly mention LGBTI communities even once.

Similarly, the government of Switzerland confirmed it will slash its foreign aid budget by CHF 110 million this year; Belgium will cut its foreign aid budget by 25% over five years under a new coalition deal struck at the end of last month; and France is planning to reduce public development aid by up to 40 percent as part of its  EUR 32 billion budget cuts for 2025.

While civil society organisations have been dealing with restructuring of development aid since 2020, with priorities rapidly shifting in the aftermath of the Covid-19 pandemic and the war in Ukraine, the public motivation given to justify these new cuts is unprecedented.

“We are particularly alarmed by the rhetoric used in these announcements,” Ehrt continues. “If States are so concerned with their national interests, they should know that inequality is the primary cause of social unrest. And yet, they choose to make the world more unstable and hence less secure by de-prioritising human rights and social justice work.”

“Civil society has been grappling with the effects of shrinking space globally. Countries that have traditionally supported civic organising are now withdrawing support. This will accelerate the decline of democracies worldwide. Every day, we hear news of organisations barely staying afloat and people counting on their support thrown into despair. The world is becoming more unstable by the day: this is not the time for States to turn their backs on those in need. We call on more donors to step in, and for States to listen to the needs of marginalised communities and provide them with a lifeline through sustainable funding.”