The Government grants 2.6 million to the FEMP for its operation

The Council of Ministers, in its meeting on August 25, 2026, approved Royal Decree 685/2026, of August 26, which regulates the direct granting of a subsidy to the Spanish Federation of Municipalities and Provinces (FEMP) for the financing of the operating expenses of its activity. The regulation is published in the Official State Gazette number 211, of August 27, 2026, in section I of General Provisions, page 116918, with reference BOE-A-2026-18206.

The subsidy, which amounts to a maximum sum of 2,625,000.00 euros, will be channeled through an agreement between the General State Administration, through the Ministry of Territorial Policy and Democratic Memory, and the FEMP. The text was signed by Felipe R. and by the Minister of Territorial Policy and Democratic Memory, Ángel Víctor Torres Pérez, and enters into force the day following its publication.

An entity that represents 95% of city councils

The FEMP is an association of local entities with full legal personality for the promotion and defense of local autonomy, which currently represents more than 95 percent of Spanish local governments. It was declared a Public Utility Association by Agreement of the Council of Ministers on June 26, 1985, and is the Spanish section of the Congress of Local and Regional Authorities (Council of Europe), as well as the official headquarters of the Ibero-American Organization for Intermunicipal Cooperation (OICI).

The regulation is based on article 22.2.c) of the General Subsidies Law 38/2003, of November 17, which allows for direct granting on an exceptional basis when reasons of public, social, economic, or humanitarian interest concur. The Government justifies the direct route due to the unique legal nature of the FEMP and its work as a representative body for local entities, which makes a public call for applications under a competitive bidding regime inappropriate.

Eligible expenses and conditions

The subsidy will be used to cover the operating expenses of the FEMP incurred during the 2026 financial year, including those necessary to strengthen its technical and management organization. Eligible expenses include:

• Leases and royalties, repairs, and maintenance.
• Insurance premiums and banking and financial services.
• Supplies and communications.
• Professional services and other external services.
• Personnel expenses and associated social benefits.

The amount will be charged to budget application 22.02.942A.480 of the Ministry’s expenditure budget. The subsidy does not constitute State aid under the terms of articles 107 and 108 of the Treaty on the Functioning of the European Union, and will be compatible with other aid provided that the cost of the subsidized activity is not exceeded.

Payment, justification, and control

Once granted, the subsidy will be transferred monthly and in equal installments during the first fifteen days of each month, with all monthly payments overdue as of the date of the agreement’s completion being paid in a single payment. The FEMP is exempt from providing guarantees due to its status as a public utility association.

The justification must be submitted within a maximum period of three months from the end of the period for carrying out the activity, including certification of the accounting statements and a justificatory report. The regulation also provides for a reimbursement regime with graduated percentages, ranging from 5 percent for non-compliance with publicity measures up to 100 percent in cases of falsification of conditions or obstruction of financial control.

The subsidy is included in the Strategic Subsidy Plan of the Ministry of Territorial Policy and Democratic Memory 2025-2027 and will be publicized in the National Subsidy Database, in accordance with Royal Decree 130/2019, of March 8.

The measure reinforces the State’s economic cooperation with the association that groups virtually all Spanish city councils and provincial councils, guaranteeing its technical and management capacity to collaborate in the development of European and national policies affecting local entities and in the carrying out of local-level studies.

Source: Official State Gazette, no. 211, August 27, 2026, Sec. I, page 116918 (official reference: BOE-A-2026-18206).