Cutting costs on the federal level, disproportionately affecting the economically disadvantaged population.
In a concerning development, both Germany and the USA are facing criticism over planned cuts to their development cooperation and humanitarian aid budgets. According to recent reports, these cuts could have devastating consequences for millions of people worldwide.
Germany, a traditionally significant contributor to global aid efforts, is moving away from the target agreed internationally 55 years ago to provide 0.7 percent of its gross national income (GNI) for development and humanitarian aid. The planned cuts in 2026 correspond to a minus of over three percent compared to 2025 and over eleven percent compared to 2024. These cuts, amounting to 331 million euros, will reduce the budget for the Federal Ministry for Economic Cooperation and Development (BMZ) to 9.94 billion euros in 2026.
Michael Herbst, chairman of the board at VENRO, criticizes this course, calling for a paradigm shift in the allocation of state funds for development cooperation and humanitarian aid. He suggests at least 0.2 percent of the BNE should flow to the poorest countries in the world (LDCs), mainly through more funds for agricultural development and food security.
Meanwhile, the USA, which financed 46.9 percent of global humanitarian aid in 2024, is almost completely dropping out under Trump since 2025. A study by The Lancet suggests that these cuts could lead to the death of around 14 million people by 2030.
The situation is dire, with over 320 million people worldwide currently in acute humanitarian need, and over 200 million acutely needy people not currently being reached. In Germany, the cuts could result in 4.3 million people not receiving food aid, 1.5 million people losing access to basic health services, 1.4 million losing secure drinking water supply, and over half a million children losing access to education.
To compensate for these cuts, VENRO is suggesting several measures. They propose implementing an inheritance tax rate of around 30-50% on large estates or introducing a wealth tax targeting millionaires and billionaires. They also plan to make a case to Bundestag members for at least 2.5 billion euros for humanitarian aid and at least 11.2 billion euros for development cooperation.
Venro also suggests potential sources for counter-financing, including wealth-based taxes, environmentally harmful subsidies, and funds from the single plan 60. Dorothee Baldenhofer of Venro further proposes that international climate finance should be increased to at least 7 billion euros, funds for promoting civil society work should be maintained at least at the 2024 level, and at least 100 million euros should be earmarked for gender-transformative, intersectional, and post-colonial feminist projects.
Despite these proposals, the 2026 budget draft does not indicate a political will to reallocate funds towards development policy and humanitarian aid. This lack of political will is concerning, as the need for aid is greater than ever. In 2022, humanitarian aid was 3.14 billion euros, but only 1.04 billion euros are planned in the 2025 budget.
As the world grapples with the effects of climate change, economic instability, and conflict, it is crucial that nations like Germany and the USA continue to support development cooperation and humanitarian aid. The medium-term financial planning foresees a further dramatic drop in the budget, down to 9.4 billion euros. This drop could have catastrophic consequences for millions of people worldwide.
Tax evasion in Germany is estimated at 100 to 200 billion euros per year. If even a fraction of these funds were redirected towards development cooperation and humanitarian aid, it could make a significant difference in the lives of those most in need. It is hoped that policymakers will heed the calls for a paradigm shift and work towards a more equitable and compassionate world.
