French Government Races to Pass Special Budget Law Amid Deadlock, Impacting MaPrimeRénov’ Aid

Facing an urgent budgetary impasse, the French government is accelerating efforts to adopt a special law to ensure continued public financing, as traditional budget negotiations in Parliament have failed. Prime Minister Sébastien Lecornu is engaging in high-level consultations with political party leaders, including Renaissance, Horizons, The Republicans, MoDem, the Socialist Party, and the Ecologists, in an attempt to forge consensus and avert a government shutdown.

Following unsuccessful talks in the mixed parliamentary commission, a special law is being drafted to temporarily fund the state and its administrations. Finance Committees of both the National Assembly and Senate have scheduled hearings with Minister of Economy Roland Lescure to discuss the proposed law, aiming for a rapid vote within 24 hours after a cabinet meeting planned for Monday, December 22.

Amid these efforts, debates have revived the possibility of using Article 49.3 of the Constitution, which allows legislation to pass without a parliamentary vote unless a motion of censure is raised, as well as passing the budget through ordinances, though the latter remains constitutionally controversial.

This budgetary uncertainty has direct consequences on public programs. Vincent Jeanbrun, Minister of Housing, confirmed MaPrimeRénov’—the government’s renovation aid scheme vital for energy-efficient home improvements—will be suspended again starting January 2026 due to the absence of an approved budget. Despite hopes to restart the scheme early in January, Jeanbrun stated on France 3 that a special law does not provide the necessary budget to reopen application portals, leaving over 80,000 pending applications unresolved.

Additionally, the new status and tax incentives for private landlords, designed to stimulate investment in rental properties, are at risk due to the special law's temporary nature, threatening broader goals in the housing sector.

As Lecornu seeks to resolve the budget deadlock quickly to protect vital public services and avoid prolonged negotiations in the new year, the political landscape remains tense with pressure from right-wing parties advocating constitutional tools to expedite the process. Meanwhile, the National Rally is expected to support the special law to keep state operations running.

The government’s swift action in adopting the special law is crucial to prevent a financial shutdown and secure funding for key programs, but uncertainties about longer-term budget approval and public service continuity persist.