Local Authorities Sound Alarm Over Sharp Cuts in 2026 Budget Impacting Urban Policy

The 2026 French finance bill has ignited significant concern among local authorities due to proposed budget cuts that threaten urban policy and territorial cohesion. On November 13, seven associations representing mayors issued a joint statement warning that the bill's provisions could undermine key programs targeting priority neighborhoods. While the State reports €4.6 billion in savings, Local Finance Committee president André Laignel estimates the cuts exceed €8 billion, factoring in reductions to the Green Fund for ecological transition and offset compensation related to professional tax reforms.

Despite a nominal rise in funding for program 147 (urban policy), allocations to priority neighborhood actions fall by €24 million (6% after inflation). Senator Jean-Baptiste Blanc, tasked with overseeing urban policy funding, highlighted a shortfall for the National Agency for Urban Renewal (ANRU), projecting revenues of €3.4 billion against anticipated €5 billion expenses from 2023 to 2028. The associations advocate for an additional €50 million to ANRU to mitigate rising territorial inequalities affecting six million residents.

As budget finalization nears, the National Assembly faces potential delays, exacerbated by a weekend recess slated despite opposition criticism. The executive defends the break citing the fatigue of parliament members. The associations' collective alarm underscores the tension between fiscal restraint and the need to sustain vital urban and territorial programs supporting France's most vulnerable communities.