The Danish government is distributing one billion kroner in special subsidies among 22 municipalities, with Lolland Municipality receiving 223 million kroner, the largest single share.
DR reports that the Ministry of Economic Affairs and the Interior announced the distribution on August 31, 2026. The figures were published in a press release ahead of a press conference presenting the allocation.
A total of 45 municipalities had applied for money from the so-called særtilskudspulje. The pool targets municipalities with demographic and socioeconomic challenges. The announcement lands while municipalities across Denmark are finalizing next year’s budgets for schools, daycare and elderly care.
Economic Affairs and Interior Minister Pia Olsen Dyhr of SF described the one billion kroner pool as markedly larger than in previous years. According to the minister, the focus was on rural municipalities facing possible school closures and problems with school refusal among children. She said not all applicants could receive money.
Lolland receives the largest amount
Rural and outlying municipalities dominate the list. Lolland receives 223 million kroner, more than double the amount going to Bornholm, which receives 110 million kroner. Langeland Municipality ranks third with 68 million kroner.
Lolland’s financial situation has been severe through the summer of 2026. As reported by DR, the mayor said earlier this summer that the municipality would have to cut everything not required by law. The deficit was first calculated at 531 million kroner and was revised down last week to 347 million kroner.
Measured per resident, Læsø receives the most, with a subsidy equal to 7,251 kroner per inhabitant. Lolland follows with 5,822 kroner per inhabitant and Langeland with 5,761 kroner. Dyhr said the government has prioritized local welfare, because that is where people notice it most.
Minister points to the equalization system
Speaking to DR Nyheder, Dyhr defended Lolland receiving roughly a quarter of the entire pool. She said Lolland is particularly challenged, repeatedly closing schools and struggling to deliver adequate elderly care. She rejected the idea that the subsidy is only a patch on an open wound.
Asked whether it is sustainable for municipalities to apply for a special pool before budget negotiations, the minister said a perfect equalization system would be preferable. She added that some problems would remain even under a new system, because the criteria cannot always be set correctly.
The municipal equalization system moves around 25 billion kroner each year between the wealthiest and poorest municipalities. According to a statement from the ministry published in June 2025, an analysis is underway ahead of negotiations on future distribution.
Dyhr said municipalities can expect a new equalization system only in 2028. Until then, the special subsidy pool remains the main instrument for the most pressured municipalities, including those facing budget crises.
Save up to 2,800 DKK on Your Electricity Bill
FindElpriser helps you switch electricity providers quickly and easily.
