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At the Cabinet meeting on 25 August, the government decided to allocate €3.1 million from the state contingency fund to the Ministry of Welfare. The funding will ensure the fulfilment of the state's obligations in the field of social assistance and provide additional support to municipalities in covering the costs of housing benefit payments.

“Municipalities are indispensable partners in delivering social assistance to residents. It is essential that the state compensates municipalities for the costs they incur while fulfilling their statutory obligations and supporting those residents who need assistance the most,” said Minister of Welfare Reinis Uzulnieks.

The draft order provides funding to cover various expenses related to the provision of social assistance. The majority of the funding is intended to support municipalities in meeting the requirements laid down in the transitional provisions of the Law on Social Services and Social Assistance.

In particular, the funding will be used to provide a targeted grant covering an additional 20% of the housing benefits paid by municipalities in accordance with the conditions laid down by law for the period from 1 January to 30 April 2026. This targeted grant will be provided in addition to the existing state co-financing of 30% already established by law.

The draft order also provides for the full reimbursement of costs incurred by municipalities in connection with supplementary payments to employees in the social sector, in accordance with the transitional provisions of the Law on Social Services and Social Assistance.