Grants of 500,000 euros for city councils with debt exceeding 110%

The Second Vice Presidency and Department of the Presidency has called for the 2026 grants destined for the financial recovery of city councils in the Valencian Community facing particular economic-financial difficulty. This is done through the Resolution of October 29, 2026, published along with its summary in the Official Gazette of the Generalitat Valenciana (DOGV) No. 10486, of November 4, 2026, with official references DOGV-C-2026-34391 (resolution) and DOGV-C-2026-34405 (summary). The call is listed in the National Grants Database under number BDNS 939132.

Who can apply for the aid

City councils of the Valencian Community that present a level of outstanding debt exceeding 110% of the current income liquidated in the 2025 financial year may apply, under the terms of Article 53 of the consolidated text of the Law regulating local treasuries, approved by Royal Legislative Decree 2/2004, of March 5, and the thirty-first final provision of Law 17/2012, of December 27, on the General State Budgets for 2013.

The aid must be used to reduce the outstanding principal of long-term financial debt operations formalized with banking entities and disbursed, and only non-ordinary amortizations are permitted. The award is resolved under a competitive bidding process, and the amount of each grant may not exceed, either individually or in conjunction with other aid, the cost of the financed action.

One hundred points, 500,000 euros and two distribution criteria

The maximum global amount is 500,000.00 euros, charged to Chapter VII, grant line S1193 (“Aid destined for the financial recovery of municipalities in particular economic-financial difficulty”), of program G01050403125A00 of the Generalitat budget for 2026.

The evaluation of applications is based on a maximum of 10 points, combining two criteria:

• Percentage of outstanding debt exceeding 110% of the 2025 current income: up to 25%, 1 point; from 26% to 50%, 2 points; from 51% to 100%, 3 points; from 101% to 200%, 4 points; from 201% onwards, 5 points.
• Population according to the latest current census: up to 1,000 inhabitants, 5 points; from 1,001 to 5,000, 4 points; from 5,001 to 20,000, 3 points; from 20,001 to 50,000, 2 points; from 50,001 onwards, 1 point.

The individual amount results from dividing the maximum global amount by the total points obtained by all entities and multiplying that value by the points of each beneficiary. Thus, smaller and more indebted municipalities receive more.

Deadline, procedures and documentation

The submission period is ten business days from the day following the publication of the call in the DOGV, that is, from November 5, 2026, and failure to comply will result in inadmissibility. The application is exclusively electronic, signed by the legal representative, through procedure G22696 of the Generalitat.

City councils must provide:

• A report from the local comptroller’s office on the level of consolidated outstanding debt relative to the 2025 current income and on the outstanding principal pending amortization.
• A certificate from the secretariat regarding the approval of the 2025 liquidation and the adherence to the Ordering Fund compartment of Royal Decree-Law 17/2014, of December 26.
• A certificate of being up to date with the submission of annual accounts to the Sindicatura de Comptes.
• Certificates from the state and regional Tax Agency and from the General Treasury of the Social Security, if they expressly oppose direct consultation.

Advance payment and resolution

The maximum period to resolve and notify is six months from publication. Up to one hundred percent of the aid may be advanced once granted, without prior application and exempt from guarantees as it concerns territorial administrations, in accordance with Article 47 of Law 4/2026, of July 22, on the Generalitat budgets for 2026, and Article 171.5.a) of Law 1/2015, of February 6. The justification must be submitted within ten business days from the payment. The regulatory bases are Decree 32/2022, of October 18, modified by Decree 12/2024, of April 23. An appeal for reversal may be filed against the resolution within one month, or a contentious-administrative appeal within two months before the High Court of Justice of the Valencian Community. Signed by the regional secretary of Institutional Policy and Territorial Cohesion, Carlos Gil Santiago, by delegation.

The call offers a limited but relevant path for the councils most burdened by debt to reduce bank capital without resorting to new loans, although the global volume of 500,000 euros limits the actual scope of the program and requires the money to be distributed according to debt and population.

Source: Diari Oficial de la Generalitat Valenciana, no. 10486, November 4, 2026, section III (administrative acts, subsidies and grants) (official reference: DOGV-C-2026-34391 and DOGV-C-2026-34405).