France Stabilizes 2026 Dotation Globale de Fonctionnement (DGF) at €27 Billion Supporting Local Finances

The French government has announced that the Dotation Globale de Fonctionnement (DGF) for 2026 will be maintained at €27 billion, continuing its vital role in supporting the operational finances of local authorities amid efforts to stabilize public finances. The DGF represents an average of 14% of municipalities’ operational revenue, 18% for intercommunalities, and 11% for departments nationwide.

In the Pas-de-Calais department, the DGF allocation per inhabitant notably exceeds the national average, standing at €272.94 compared to €174.76. This year’s funding follows three years of exceptional increases totaling €790 million, aimed at reversing previous reductions local authorities endured while contributing to France’s financial recovery.

The 2026 DGF distribution reflects demographic trends and local diversity, comprising a base allocation and three solidarity allocations focusing on regional equity. The government has significantly boosted solidarity allocations by €400 million, including €150 million each for urban and rural solidarities, €90 million for intercommunalities, and €10 million for departments. For Pas-de-Calais, urban solidarity funding will increase by €6.05 million to €169.69 million, and rural solidarity allocation by €2.22 million to €54.46 million.

These increases are primarily funded through reallocations within the DGF’s base allocation. Despite this adjustment, 52% of communes in Pas-de-Calais will see their DGF remain stable or improve, while only a small fraction (5.6%) will face reductions exceeding 2% of their operational revenues.

The government's strategy underscores its commitment to sustaining local services and promoting balanced regional development through targeted financial support in 2026.