LGBTQ+ Rights Funding Crisis: 2025 Collapse & Impact

Global funding for LGBTQ+ rights is facing a severe crisis, with cuts to aid and financial support threatening initiatives worldwide. The loss of funding impacts programs addressing healthcare, education, and legal protections, including efforts to decriminalize same-sex relations in numerous countries.

A Global Crisis in LGBTQ+ Funding

The reduction in U.S. support has not only eliminated programs that helped people access healthcare, education and jobs, but also impacted initiatives seeking to change laws that criminalize LGBTQ+ individuals in 65 countries.

In the Pacific region, a USAID-funded program aimed at legal reform in nations like Tuvalu, Tonga, and Papua New Guinea was paused in January, leaving communities vulnerable and halting critical momentum. Six island nations in the region still maintain laws banning same-sex relations.

“Communities were left vulnerable, and critical momentum was at risk,” said Louisa Wall, chair of the project led by ILGA-Oceania, a regional LGBTQ+ group.

The funding shortfall extends beyond U.S. cuts. The Global Philanthropy Project (GPP) estimated in February that at least US$105 million in donor government aid for LGBTQ+ rights is at risk due to anticipated cuts to overseas development assistance, including from the Netherlands.

Activists express concern that other countries, including Britain, may soon follow suit and cut LGBTQ+ funds. Companies globally have also pulled financial support from LGBTQ+ rights groups following Trump’s campaign against diversity, equity and inclusion (DEI) policies.

“It’s a crisis like we’ve never seen before,” said Jason Ball, executive director at GiveOut, a foundation that raises funds for LGBTQ+ groups globally.

Filling the Gaps and Facing Further Cuts

Some organizations are attempting to mitigate the impact of the funding crisis. Support from the Human Dignity Trust and the New Zealand chapter of Amnesty International has allowed work to decriminalize same-sex activities to continue in the Pacific.

“While this support has filled an important gap, the work is far from complete,” Wall said. “We urgently need more support from governments and other donors.”

GiveOut has launched an Urgent Response Fund, raising US$350,000 from individuals, firms and foundations. The GPP has garnered US$182 million for the years 2025 to 2028 from governments and other donors.

However, many traditional donor governments, including Germany, Sweden and Canada, are reducing foreign aid in general, sometimes to divert funds to defence. Spain, Italy and Korea, while increasing aid, cannot compensate for the overall deficit.

The Human Rights Funders Network estimates that rights-focused overseas development assistance is projected to decline by up to US$1.9 billion annually by 2026, disproportionately affecting LGBTQ+ and gender equality initiatives.

This decline coincides with growing funding for anti-LGBTQ+ conservative groups and legislative efforts to restrict LGBTQ+ rights in countries including the United States, Ghana, and Kazakhstan.

“This will force activists to abandon work they have spent years building and more narrowly focus their efforts,” said Alex Farrow, CEO at the Kaleidoscope Trust, which campaigns for LGBTQ+ rights across Commonwealth countries.

“What we do not do is hope this is all going to suddenly get better and cling to the things that are comfortable and safe, but ultimately will not take us forward,” he said. “It’s worth reminding ourselves that big government money and corporate sponsorships are an entirely modern phenomena.”

Despite the challenges, activists remain committed to their work. In rural Bangladesh, Shawon expressed continued determination to make a difference, stating, “Simply giving up is not an option.”