Madrid allocates five million to reactivate businesses and freelancers in the Sierra Oeste

The Community of Madrid has added three new lines to the Strategic Grant Plan of the Ministry of Presidency, Justice and Local Administration for the economic recovery of the Sierra Oeste following the forest fires of the summer of 2026, with a joint allocation of 17.5 million euros. Of that amount, 5 million are specifically destined for companies and self-employed workers in the affected municipalities. The decision is formalized in the Order of October 7, 2026, by Minister Miguel Ángel García Martín, published in the OFFICIAL GAZETTE OF THE COMMUNITY OF MADRID no. 250, of October 20, 2026 (reference BOCM-20261020-16).

The framework for the measure is the Strategic Grant Plan of the Ministry of Presidency, Justice and Local Administration for the years 2026 and 2027, approved by the Order of December 3, 2025, and published in the BOCM no. 298, of December 15, 2025. The modification is supported by article 8.1 of the Law 38/2003, of November 17, General Law on Grants, and article 4 bis of the Law 2/1995, of March 8, on Grants of the Community of Madrid, which require the prior specification of objectives, deadlines, costs, and sources of financing.

The text justifies the incorporation of the three lines due to the forest fires that occurred during the summer of 2026 in the Sierra Oeste, which make it necessary to “promote the recovery and economic reactivation of the area.” The order takes effect from the moment of its signing and will be published in the regional Transparency Portal.

Five million for the business fabric

The first of the lines, identified as section VI of paragraph 5.5.a) of the annex, is aimed at companies and self-employed workers who carry out their activity in the municipalities of the Sierra Oeste affected by the fires. Its objective is to promote the recovery and maintenance of economic activity and contribute to the reactivation of the business fabric, with a completion period spanning 2026 and 2027.

The estimated cost amounts to 5,000,000 euros, entirely in the 2026 fiscal year, with the following distribution:

• 4,650,000 euros to finance the grants.
• 350,000 euros to cover the costs of the collaborating entity that will participate in the management.

The financing is provided by the budget program 942O “Territorial Rebalancing”, of the General Directorate for Territorial Rebalancing, with 3,100,000 euros from sub-concept 47300 (current expenses), 1,550,000 euros from 77309 (capital expenditures), and 350,000 euros from 22809 (collaborating entity). The credit is linked to the investment project 2026/000919 “Reconstruction of 2026 fires”.

The grants will be awarded on a competitive basis, through the approval of the corresponding regulatory bases and call for applications. Monitoring will be conducted by the number of applications, the number of beneficiaries, and the degree of credit execution.

1.5 million for tourism reactivation

The second line, heading XI of section 5.5.b), is a direct grant to the Association for the Integral Development of the Sierra Oeste de Madrid (ADI Sierra Oeste) for actions to promote, energize, and enhance the tourism resources of the territory. It is endowed with 1,500,000 euros in 2026, charged to sub-concept 48099 “Other non-profit institutions” of the same program 942O, and will be implemented through an agreement.

Half a million per municipality

The third line, heading XII, provides for direct grants for exceptional reasons of public, economic, and social interest to the twenty-two municipalities of the Sierra Oeste, for municipal investments in tourism reactivation and the maintenance and creation of employment. The total allocation is 11,000,000 euros in 2026, at a rate of 500,000 euros per city council, charged to budget position 76309 “Local Corporations”:

• Aldea del Fresno, Batres, Cadalso de los Vidrios, Cenicientos, Chapinería, and Colmenar del Arroyo.
• Fresnedillas de la Oliva, Navalagamella, Navas del Rey, Pelayos de la Presa, Quijorna, and Robledo de Chavela.
• Rozas de Puerto Real, San Martín de Valdeiglesias, Santa María de la Alameda, Valdemaqueda, Valdemorillo, and Villa del Prado.
• Villamanta, Villamantilla, Villanueva de Perales, and Zarzalejo.

Impact for the area

The order comes after other regional emergency measures for the region, such as the aid for self-employed workers organized in September 2026. For shops, SMEs, and self-employed workers of the Sierra Oeste, the 5 million line is the first specific business reactivation fund, although its effective payment will depend on the publication of the regulatory bases and the competitive call for applications, which are still pending.

Source: OFFICIAL GAZETTE OF THE COMMUNITY OF MADRID, no. 250, of October 20, 2026, section I.C “Other Provisions”, page 117 (official reference: BOCM-20261020-16).