The Danish government and the Danish National Association of Local Authorities (KL) have reached a financial agreement for 2026, allocating funds to municipal services, construction projects, cybersecurity enhancements, and reform implementations. The agreement outlines key financial provisions for the country’s 98 municipalities.

The municipal service framework will see an increase of DKK 3.5 billion, reaching a total of DKK 336.8 billion. However, municipalities are expected to reduce administrative expenses by DKK 250 million, making the net financial boost similar to the previous year.

A construction framework increase of DKK 2 billion brings the total to DKK 22.3 billion. These funds are earmarked for investments in infrastructure such as day care centers, schools, and nursing homes. Approximately DKK 700 million is allocated for expanding municipal housing capacity, while DKK 908 million will support the creation of improved specialist rooms in primary schools.

In response to increasing cyber threats, DKK 195 million has been designated for strengthening municipal cybersecurity from 2026 to 2029. The plan involves consolidating the municipalities’ IT operations into four to five joint units.

An additional temporary financing grant of DKK 1.8 billion will be provided to the municipalities in 2026. This extra funding is intended to support the implementation of various reforms.