More Countries Cut Foreign Aid, Endangering Marginalised Communities

The world’s most vulnerable communities are facing an alarming crisis as governments slash foreign aid budgets at an unprecedented rate.

What began with the Trump administration’s drastic cuts to US foreign aid has now become a global trend, with countries such as the United Kingdom, the Netherlands, Switzerland, Belgium, and France following suit.

The impact is devastating, particularly for civil society organisations and marginalised groups, including LGBTQI+ communities, women, and those living in conflict zones.

The US Sets a Dangerous Precedent

Since January 2025, the Trump administration’s decision to gut US foreign development aid has sent shockwaves across the globe. The United States, historically the largest provider of Official Development Assistance (ODA), has withdrawn critical funding that previously supported human rights groups, civil society organisations, and HIV prevention and treatment services. The executive order cutting US aid is already having severe consequences, leaving millions in dire straits.

LGBTQI+ organisations are among the hardest hit. Many of these groups relied on USAID or US State Department grants, as they are often unable to secure funding locally due to discriminatory laws and societal stigma.

Now, just as politicians ramp up anti-LGBTQI+ rhetoric and violence escalates, these organisations are losing their primary sources of funding. 

A Domino Effect: Other Governments Follow Suit

The US retreat from development aid has emboldened other nations to do the same.

• United Kingdom: The UK has announced a 40% reduction in its international development budget, dropping it to just 0.3% of GDP to fund an increase in defence spending.
• Netherlands: The Dutch government plans to cut €2.4 billion from its aid budget starting in 2027, prioritising “Dutch interests” over global solidarity.
• Switzerland: The Swiss government will reduce its foreign aid spending by CHF 110 million this year.
• Belgium: A coalition deal has been struck to slash Belgium’s foreign aid budget by 25% over five years.
• France: The French government plans to cut development aid by up to 40% as part of sweeping €32 billion budget reductions for 2025.

These cuts come at a time when civil society groups are already under threat due to increasing political hostility, democratic backsliding, and a decline in the rule of law worldwide.

A Humanitarian Crisis in the Making

ILGA World and its regional networks—Pan Africa ILGA, ILGA Asia, ILGA-Europe, ILGA-NAC, ILGA Oceania, and ILGALAC—have issued a stark warning: the consequences of these aid cuts will be severe. Health centres will be forced to shut their doors, life-saving programmes will end, and marginalised communities will be left without essential resources.

“Governments are making the conscious choice to stop, or gut, investing in foreign aid. These cuts have very concrete consequences, for civil society at large and the provision of health services — including reproductive health,” said Julia Ehrt, Executive Director of ILGA World. 

“Make no mistake: governments know that these choices will put thousands of people’s lives at risk – yet they’re withdrawing their long-standing support anyway without offering alternatives,” Ehrt continued.

The impact is particularly dire in the Global South, where systemic discrimination and violence already leave LGBTQI+ people vulnerable. 

In South Africa, several key HIV and gender affirming health programmes catering to the needs of LGBTQI+ communities have been forced to shut down, further endangering lives.

The Dangerous Rhetoric Behind the Cuts

Beyond the funding reductions, the justifications given by governments for these cuts are deeply troubling. The rhetoric surrounding these announcements suggests that foreign aid is a luxury rather than a necessity, with national interests being prioritised over global solidarity.

Ehrt warns that this dangerous mindset undermines global stability. “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.”

A Call to Action

The world cannot afford to ignore this crisis. Civil society is already struggling under immense pressure, and with foreign aid disappearing, the situation is growing more desperate by the day.

ILGA World and its regional partners have called on donor countries to step up and fill the void left by these budget cuts. 

“The world is becoming more unstable by the day,” Ehrt emphasised. “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.”

Maria Sjödin, Executive Director of Outright International, also called on funders, including international agencies and private donors to step in to mitigate the impact of the lost funding. “It is critical that they uphold their moral duty to leave no one behind, ensuring that essential services and projects that have been cut are revived,” said Sjödin.

The retreat from foreign aid is not just an economic decision—it is a moral failure with life-or-death consequences. As governments withdraw their commitments, civil society organisations and vulnerable communities need urgent support to survive in an increasingly hostile world.