Joint Statement on efficiency measures in response to the humanitarian funding crisis

Overview

The humanitarian sector is facing unprecedented challenges. The recent funding cuts have sent shockwaves across an already overstretched system, disrupting the delivery of lifesaving aid and creating cascading, knock-on effects on aid organisations—particularly local and national actors.

These developments undermine our collective ability to assist affected populations, risk reversing hard-won efficiency gains, and threaten nearly a decade of progress on Grand Bargain commitments.

Given the impact of the financial crisis, Grand Bargain signatories identified the need to take action to:

• Safeguard principled and needs-based humanitarian assistance
• Empower local partners
• Protect core humanitarian functions

This Joint Statement advances these objectives in the spirit of the quid pro quo. It outlines urgent measures anchored in Grand Bargain commitments for 2025–2026 and reinforces priorities set out in the ERC’s Humanitarian Reset.

Collective Measures

We recognise that increasing the efficiency of humanitarian response is a shared responsibility. We commit to:

• Shifting towards a system that incentivises collaboration over competition
• Advancing localisation and participation
• Increasing funding flexibility and reducing requirements

We will strengthen risk-sharing between actors, applying Grand Bargain principles to manage risks more effectively.

We also commit to safeguarding core programmes and functions at risk of being deprioritised, including:

• Protection programming
• Gender programming
• Expansion of cash assistance

While this statement focuses on immediate efficiency gains, broader structural reforms remain necessary. This includes:

• Reducing system fragmentation
• Strengthening collaboration through consortia
• Streamlining funding instruments
• Reducing conditionalities

We recognise the primary responsibility of governments to meet the needs of their populations. Humanitarian action should support and align with national systems where possible, while strengthening collaboration with:

• National governments
• Development actors
• The private sector

This Joint Statement builds on existing Grand Bargain commitments and does not replace individual responsibilities. We remain committed to advancing Grand Bargain 3.0 objectives in line with the Implementation Agenda 2024–2026, including targets on localisation and flexible funding.

Specific Measures

Aid Organisations Commitments

We, aid organisations, will coordinate to achieve a leaner, people-centred, and more efficient humanitarian response.

Through the Humanitarian Reset and internal restructuring, we will:

• Prioritise responses based on severity of needs, with institutionalised consultations to identify community priorities across planning, coordination, financing, and accountability
• Promote coordination structures enabling co-leadership of local actors, tailored to context and community priorities (including area-based coordination and streamlined clusters)
• Increase funding to local partners through inclusive and locally led modalities (e.g. local intermediaries and pooled funds)
• Provide at least 70% of Country-Based Pooled Fund (CBPF) resources globally to local and national actors, including women-led and women’s rights organisations
• Increase the use of cash assistance by 5% by 2026 (beyond the current global level of 23%), prioritising multipurpose cash where appropriate
• Reduce reliance on pledging conferences and agency-specific appeals, limiting them to acute crises and consolidating donor appeals where possible
• Adopt a common approach to compliance and reporting, including:
  • Passporting and mutual recognition of due diligence
  • Streamlined oversight for local partners
  • Consistent use of the 8+3 reporting template

Donor Commitments

We, donors, will coordinate to enable strategic decision-making and enhance the quality of humanitarian funding.

We will meet at Director level in fall 2025 to coordinate funding priorities for 2026 and use existing platforms (donor support groups, Good Humanitarian Donorship, country-level dialogues) to:

• Increase predictable funding to UN, RCRC, and NGO-led pooled funds, particularly locally led funds
• Secure at least 15% of HRP funding for CBPFs in 2026, linked to progress on:
  • Coordination
  • Equitable partnerships
  • Locally led and inclusive action
• Ensure 30% of mandated organisations’ budgets are covered by unearmarked or softly earmarked funding to preserve normative and coordination capacity
• Expand flexible funding modalities, including:
  • Pre-positioned funding
  • Rapid response mechanisms
  • Program-based and strategic partnerships
  • Country earmarking in consultation with partners
• Embed flexibility in contracts through:
  • Crisis modifiers
  • Pre-financing and upfront funding
  • Reprogramming provisions
• Support equitable partnerships by incentivising implementation of commitments on intermediaries
• Reduce donor requirements by:
  • Sharing partner assessments and audits
  • Adopting simplified reporting formats such as 8+3

Accountability

Progress will be monitored through existing Grand Bargain mechanisms, including:

• Grand Bargain self-reporting
• Annual meetings (2025 and 2026)
• Independent report (2026)

We will also explore the role of Grand Bargain National Reference Groups in seven focus countries to:

• Assess implementation at country level
• Provide feedback to Annual Meetings

Endorsers (as of 22 July)

• The Netherlands
• Norway
• ICVA
• NEAR
• UNICEF
• WFP
• IFRC*
• Switzerland
• A4EP
• Ireland
• Denmark
• Germany
• NRC
• Save the Children
• Belgium
• InterAction
• CRS
• The UK
• Oxfam
• CARE

Note

Regarding specific measures for aid organisations (bullet point 6):
Recognising the unique nature of the International Red Cross and Red Crescent Movement, including its statutes and principle of independence, the Movement will retain its own complementary but separate funding, accountability, and reporting lines.