Funds for frontline communities: Shmyhal says government is preparing additional support tool

Prime Minister Denys Shmyhal announced this via Telegram, according to Ukrinform.

Shmyhal said he participated in a meeting of the Presidium of the Congress of Local and Regional Authorities under the President of Ukraine.

He stressed that the government is focusing on three key areas.

The first is the financial sustainability of communities. The total resource of local budgets for this year amounts to nearly UAH 737 billion, including UAH 217 billion in transfers from the state budget. In the first quarter of 2025 alone, UAH 39 billion in transfers was allocated to local authorities. Reverse grants remain in place for frontline communities.

"At the president's instruction, we are beginning to develop an additional support mechanism for communities affected by active hostilities or located in areas of potential conflict. This will ensure that local authorities have the necessary resources to maintain infrastructure and provide basic services to residents," Shmyhal said.

The second key area is reconstruction, Shmyhal said. The government continues to prioritize housing, education, healthcare, and infrastructure. Over 800 schools, approximately 1,000 medical facilities, and more than 100,000 residential buildings have already been rebuilt. A pilot government project is underway to comprehensively restore the towns of Borodianka, Trostianets, Tsyrkuny, Posad-Pokrovske, and Yahidne, with an additional UAH 5.2 billion allocated for this initiative.

"This year we are launching reconstruction based on a project-driven approach using the DREAM system and a unified project portfolio, involving local communities in outlining key projects," Shmyhal added.

He also emphasized the effectiveness of the eRestoration program: over 87,000 Ukrainian families have already repaired their homes using state compensation, and 7,600 families have purchased housing using housing certificates. This week, compensation payments began for the rebuilding of private houses.

Shmyhal also said that a priority was ensuring the continuous operation of critical infrastructure. He stressed the importance of maintaining access to water, electricity, heating, and other essential services.

"We have successfully completed the third wartime heating season and are preparing for the next. So far, 148 cogeneration units and 84 modular boiler houses with a total capacity of 268 MW have been installed. This year, another 280 units and 140 boiler houses are to be installed. The main focus is on frontline regions, which will receive the bulk of financial and technical support," he said.

President Volodymyr Zelensky earlier tasked the government with urgently allocating special support funds to frontline and border communities, particularly those bordering the Russian Federation.

Photo credit: Denys Shmyhal / Telegram