Funds for frontline communities: Shmyhal says government preparing additional support

Prime Minister Denys Shmyhal announced this on Telegram, as reported by Ukrinform.

Shmyhal noted that he took part in a meeting of the Presidium of the Congress of Local and Regional Authorities under the President of Ukraine.

He focused on three main areas.

The first is the financial sustainability of communities. The total volume of local budgets for the current year is almost UAH 737 billion, including UAH 217 billion in transfers from the state budget. In the first quarter of 2025, local authorities were provided UAH 39 billion in transfers. Reverse grants are retained for frontline communities.

“On the instructions of the president, we are starting to develop an additional mechanism to support communities affected by active hostilities or located in potential conflict zones. This will provide local authorities with the necessary resources to maintain infrastructure and provide basic services to the population,” Shmyhal said.

Read also: More than 100,000 residential buildings have been restored in Ukraine since the start of the full-scale war

The second key area is reconstruction, Shmyhal noted. The government continues to prioritize housing, education, healthcare and infrastructure. More than 800 schools, about 1,000 medical institutions and more than 100,000 residential buildings have already been restored. A government pilot project for the comprehensive restoration of the cities of Borodyanka, Trostyanets, Tsirkuny, Posad-Pokrovskoye and Yagidne is being implemented, an additional UAH 5.2 billion has been allocated for this initiative.

“This year, we are starting reconstruction using a project-based approach using the DREAM system and a single portfolio of projects, involving local communities in identifying key projects,” Shmyhal added.

He also emphasized the effectiveness of the eRestoration program: more than 87,000 Ukrainian families have already renovated their homes with the help of state compensation, and 7,600 families have purchased housing with the help of housing certificates. This week, compensation payments for the restoration of private homes began.

Shmyhal also noted that the priority is to ensure the continuous operation of critical infrastructure. He emphasized the importance of maintaining access to water, electricity, heating and other basic services.

“We have successfully completed the third military heating season and are preparing for the next one. To date, 148 cogeneration units and 84 modular boiler houses with a total capacity of 268 MW have been installed. This year, it is planned to install another 280 units and 140 boiler houses. The main focus is on frontline regions, which will receive the main financial and technical support,” he said.

Earlier, President Volodymyr Zelensky instructed the government to urgently allocate special funds to support frontline and border settlements, especially those bordering the Russian Federation.