The German Academic Exchange Service (DAAD) is responding to persistently high cost pressure in Germany and around the world. In order to meet the challenges, the DAAD is cutting 13 scholarship and university internationalisation programmes. Around 2,500 scholarships will be cancelled each year.

"We are facing major financial challenges at the DAAD. For example, we are confronted with sharply rising costs in Germany and worldwide, such as personnel, IT and rental costs. We are also under additional financial pressure due to a point that is in itself a positive development: scholarship rates for foreign students and doctoral candidates who come to Germany have risen by 34 per cent in the last ten years without these increases being offset. These cost increases require well thought-out and effective measures in order to remain viable in our central funding areas of scholarships and university cooperation. Accordingly, we have launched a consolidation programme to ensure that we are crisis-proof for the future in the centenary year of the DAAD's existence," said DAAD President Prof. Dr Joybrato Mukherjee in Bonn.

As part of the consolidation, the DAAD is discontinuing the following 13 programmes that were previously funded by the Federal Foreign Office:

Scholarship programmes

Graduate School Scholarship Programme, research stays for foreign academics, Leadership for Africa and a specialist literature programme.

Programmes to promote the internationalisation of German universities and other programmes

Future Ukraine, STIBET special funding for Ukraine, German-Pakistani research cooperation, study trips and internships as well as concert tours for foreign students, university partnerships with Greece, funding for DaF courses to support German universities abroad, the Belarus, Slovakia and Czech Republic historical commissions programme as well as the Alumniportal Deutschland and funding for German studies conferences abroad.

Consolidation is based on a prioritisation of the DAAD's tasks and activities. Strategic priority is given to programmes with a wide reach that appeal to a broad international target group; therefore, priority will be given to discontinuing programmes that relate to region-specific funding or specialist topics. The DAAD will reduce the number of staff working for the programmes that have now been discontinued without any compulsory redundancies.
"The discontinuation of the programmes and the associated staff cuts are unfortunately unavoidable in the current situation," emphasised the DAAD President. "Looking to the future, we hope that the next federal government to be formed after the early federal elections will also send a strong signal in favour of Germany's foreign science policy. With currently 405,000 international students and 75,000 international academics, Germany's higher education and science system is one of the most attractive in the world. This strength should be expanded in view of the major economic challenges in Germany and the fierce global competition."

Focussing and consolidation in the global network

In order to reduce costs and align itself internationally with clear strategic priorities, a focussing process has also been underway at the DAAD offices worldwide for several years. The DAAD is increasing its involvement in offices with regional responsibility for several countries ("field offices"), closing some smaller offices ("information centres") and upgrading selected information centres to field offices with regional responsibility. In 2018, the process started with a total of 71 DAAD offices worldwide, including 15 field offices and 56 information centres. In the course of 2025, the target number of 55 DAAD offices worldwide is to be reached, including 21 branch offices and 34 information centres.

Background: Sources of DAAD funding

The DAAD's annual budget comes from four central sources: Basic funding is provided by the Federal Foreign Office, funding for the university cooperation programmes comes from the Ministry of Science (BMBF) and the Ministry for Economic Cooperation and Development (BMZ), and the Erasmus+ programme is funded by the European Union.
The basic funding from the Federal Foreign Office ensures the operation of the DAAD. It also enables the awarding of scholarships to international students and the funding of German academics at universities around the world as well as cooperation between German universities and international partners. The draft budget of the former coalition government provided 205 million euros in basic funding for the current year; the German Bundestag had approved 218 million euros for 2024 . 
The Ministry of Science (BMBF) is planning around 185 million euros for programme funding in 2025, including funding for a new German-Ukrainian university network. The Federal Ministry for Economic Cooperation and Development (BMZ) is planning around 55 million euros - both ministries thus envisage similar budgets for the DAAD as in 2024.
For the Erasmus programme, the DAAD will receive around 255 million euros from the EU for 2025, an increase of over twenty million euros. "With these funds, we can provide German universities with more resources for exchange and cooperation within the framework of Erasmus+. The EU now contributes almost a third of the DAAD's total budget," said the DAAD President.