The Cabinet of Ministers of Ukraine has adopted the draft order “On the allocation of additional subsidies from the state budget to local budgets for the exercise of powers by local governments in de-occupied, temporarily occupied, and other territories of Ukraine that have been adversely affected by the full-scale armed aggression of the Russian Federation”.

The mechanism for allocating the additional subsidies takes into account the needs of communities in areas subject to potential and ongoing hostilities, as well as other territories adversely affected by the war. Its aim is to reduce disparities in local budget revenues and ensure adequate funding for priority expenditure, primarily the remuneration of staff at state-funded institutions.

The document provides for the allocation of nearly UAH 2.3 billion in additional subsidies from the state budget to local budgets in line with Resolution No. 80 of the Cabinet of Ministers of Ukraine dated 28 January 2026. The funds have been distributed amongst the budgets of 179 communities and 5 regional budgets.

In particular, the additional subsidies will be allocated to:

• Dnipropetrovsk region — UAH 314.8 million (20 budgets);
• Donetsk region — UAH 409.6 million (28 budgets);
• Zaporizhzhia region — UAH 520.1 million (24 budgets);
• Luhansk region — UAH 6.1 million (4 budgets);
• Mykolaiv region — UAH 12.3 million (9 budgets);
• Odesa region — UAH 104.1 million (19 budgets);
• Sumy region — UAH 206.8 million (24 budgets);
• Kharkiv region — UAH 627.2 million (34 budgets);
• Kherson region — UAH 39.1 million (17 budgets);
• Chernihiv region — UAH 33.5 million (5 budgets).

The allocation of funds was based on the results of the implementation of local budgets for the first half of 2026. In determining the amount of the subsidies, actual revenues from personal income tax, property tax, land tax, the single tax, and corporation tax paid into the regional budgets were taken into account.