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How have aid cuts reshaped the humanitarian sector?

How have aid cuts reshaped the humanitarian sector?

Global Humanitarian Aid Faces Major Funding Cuts

Recent research by the Activity Learning Network for Accountability and Performance (ALNAP) highlights a significant decline in government funding for humanitarian aid. By the end of the year, this funding could decrease by between 34% and 45% compared to 2023 levels. This sharp reduction marks a dramatic shift from the previous decade, which saw a steady increase in aid budgets.

The trend of funding cuts began in 2024, with 2025 being described as a turning point. However, the impact of these reductions has already been felt, exacerbating the gap between the growing need for aid and the available resources. Since 2021, an additional 70 million people have required humanitarian assistance, yet funding has not kept pace with this rising demand.

One of the key factors behind the drop in aid is the diminishing influence of the “Ukraine effect.” Following Russia’s full-scale invasion in February 2022, global attention and funding for humanitarian efforts increased significantly. However, as the conflict has persisted, interest and financial support have waned, contributing to the current crisis.

Where Is Humanitarian Aid Going?

Despite the overall decline, some regions continue to receive substantial aid. The Palestinian territories were the largest recipients of international humanitarian assistance in 2024, receiving $2.9 billion (€2.5 billion), a 51% increase compared to 2023. Ukraine followed closely behind, receiving $2.8 billion (€2.4 billion) in aid. However, it experienced a 25% funding decrease for the second consecutive year, signaling a concerning trend.

In terms of donor countries, the United States saw the most significant reduction in humanitarian aid in 2024, with funding dropping by 10.4% from 2023 levels. Similarly, aid from EU institutions fell by 12.7%. While some European governments increased their contributions in 2024, the majority of countries cut their aid budgets.

Germany and Norway reduced their humanitarian aid by more than 20% compared to 2023, while France’s aid dropped by 15%. In contrast, the UK and Sweden stood out as exceptions, increasing their aid by 39.9% and 3.4%, respectively.

Impact of Funding Reductions

The mass cuts to humanitarian funding were driven by 16 of the 20 largest donors reducing their contributions. Additionally, private donations also saw a notable decline, further straining the sector. Despite these challenges, the overall structure of funding has remained relatively stable, with the top 10 donors still providing 84% of all public humanitarian assistance in 2024, compared to 83% in 2023.

This heavy reliance on a small number of major donors makes the humanitarian sector vulnerable to sudden shifts in funding. As global priorities evolve and economic pressures mount, the sustainability of aid efforts remains uncertain. With many countries reevaluating their foreign aid commitments, the future of humanitarian assistance looks increasingly precarious.