Human Development

Aug 5, 2026 Nancy Qian

Wars, epidemics, displacement, and geopolitical competition will ensure that rich countries continue to spend money abroad, whether for humanitarian reasons or in pursuit of their own interests. The only question is what sort of aid system will emerge from the current retrenchment.

CHICAGO—Foreign aid is shrinking, but it is not disappearing. Even after the sharpest annual decline on record, OECD donors still provided $174.3 billion in assistance in 2025. This includes $29 billion from the United States, despite the slashing of 83% of US Agency for International Development (USAID) programs by Donald Trump’s administration. Moreover, wars, epidemics, displacement, and geopolitical competition will ensure that rich countries continue to spend money abroad, whether for humanitarian reasons or in pursuit of their own interests.