The Government approves 21.5 million in subsidies for Ceuta and Melilla

The Council of Ministers approved on September 1st the Royal Decree 708/2026, of September 2nd, which regulates the direct granting of subsidies to carry out actions of general interest in the autonomous cities of Ceuta and Melilla. The regulation, promoted by the Ministry of Finance, is published in the Official State Gazette number 218, of September 3, 2026, in section I of general provisions (official reference BOE-A-2026-18510).

The decree, signed by Felipe R. at the proposal of the Minister of Finance, Arcadi España García, allocates a total of 21.5 million euros to finance the operation of desalination plants and to cover essential services in both cities, which, due to their geographical location, practically lack conventional water resources and present poverty risk rates higher than the national and European average.

Financing of desalination plants

The bulk of the aid is concentrated on the maintenance of desalination plants, which are key to the population’s water supply. Budget item 37.02.942N.464, endowed with 8,000,000 euros, is divided between both cities based on their municipal census as of January 1, 2025:

• 3,925,224 euros for the city of Ceuta.
• 4,074,776 euros for the city of Melilla.

Actions of general interest

In addition to water, the decree finances specific actions to address the geostrategic situation and combat social inequalities. In Ceuta, budget item 37.02.942N.466, amounting to 3,250,000 euros, covers:

• Regulation of the traffic of people and vehicles.
• Public safety.
• Waste collection and cleaning in peripheral areas.
• Fight against fraud in the import of goods.

In Melilla, budget item 37.02.942N.465, amounting to 10,250,000 euros, is allocated to:

• Social services, such as home care, toy libraries, and the provision of services in juvenile centers.
• Agreements with associations, non-profit foundations, and NGOs for social, welfare, health, and integration actions.
• Public policies regarding education.
• Education and youth actions, such as preschools, nurseries, book replacement, and subsidized placements.

Procedure and deadlines

Grants are awarded directly, under article 22.2.c) of the General Grants Law 38/2003, as Ceuta and Melilla are the only entities capable of fulfilling its purpose, which precludes competitive bidding. Each city must submit its application through the electronic registry of the Ministry of Finance within a maximum period of fifteen days from the date of entry into force, and the granting resolution, which shall be the responsibility of the Secretary of State for Finance, must be issued within one month. The actions must be executed within the 2026 fiscal year, and advance payments are permitted, subject to proof of being up to date with the Treasury and Social Security.

Source: Official State Gazette, no. 218, Thursday, September 3, 2026, Sec. I, page 118543 (official reference: BOE-A-2026-18510).