All the resources and financial aid to support your community
Last update: April 7, 2025
The financing of local authorities is based on a complex but structured system, combining their own resources, government grants and other subsidies. This funding enables communes, départements and regions to exercise their powers and carry out projects of general interest.
Good to know:
Local authorities account for almost 20% of French public spending. In 2024, they managed some 262.7 billion euros in revenue to carry out their public service missions.
This guide will help you navigate the ecosystem of funding available to your local authority, from traditional government grants to more recent schemes such as the Green Fund.
In this guide, you will discover :
Local taxes are the main source of revenue for local authorities:
Note: The taxe d'habitation has been gradually abolished, with compensation provided by the State via a tax transfer.
Government grants and subsidies :
In 2024, financial transfers from the State to local authorities will total around 111.6 billion euros.
Local authorities can borrow to finance their investments.
In 2022, borrowing by local authorities and their own tax groups totaled 16.5 billion euros.
Please note:
Borrowings must be included in the budget as investment income and may not be used to balance the operating section (article L.1612-4 of the CGCT).
Additional resources to diversify financing :
Tip:
Explore participatory financing platforms dedicated to public projects, such as Collecticity or I adopt a project.
Created in 1979, the DGF is the main operating subsidy paid by the State to local authorities. It will represent 27.2 billion euros in 2024.
Good to know:
Over three years (2023-2025), the French government has increased the DGF by 790 million euros, a historic level after 13 years of decline or stability.
| Type of DGF | Components | Objectives |
|---|---|---|
| Municipal DGF |
|
Financing operations and reducing inequalities between municipalities |
| EPCI DGF |
|
Support for intercommunality and compensation for transferred expenses |
| Departmental DGF |
|
Financing departmental responsibilities and reducing inequalities |
The DGF is calculated according to several criteria that take into account the specific characteristics of each local authority:
Simplified formula :
For a given commune, the "dotation forfaitaire" is mainly calculated on the basis of the previous year's allocation, adjusted for population growth and subject to a possible capping for the "richest" communes (high tax potential).
After a period of decline between 2014 and 2017 as part of local authorities' contribution to the recovery of public finances, the DGF has been stabilized and then revalued in recent years.
To find out the amount of your DGF :
Please note:
Despite the overall increase in the envelope, some communes may see their DGF decrease due to capping mechanisms or demographic changes. It is therefore important to monitor the evolution of this resource on a regular basis.
To support local authorities' investment projects, the French government offers a number of dedicated schemes to finance equipment and infrastructure essential to regional development.
Dotation d'Équipement des Territoires Ruraux (rural development grant)
Eligible municipalities :
Areas financed :
The categories of priority operations are set by a departmental commission of elected representatives.
Local Investment Support Grant
Eligible communities :
Priority projects :
Fonds d'Accélération de la Transition Écologique dans les Territoires (Ecological Transition Acceleration Fund for Territories)
Beneficiaries :
Financial package :
With a budget of 1.15 billion euros by 2025, this recent scheme is proving very popular with local authorities.
Funding sources :
Advantage :
The Green Fund can be combined with other schemes, such as the DETR and DSIL, up to the ceiling of 80% of public aid.
Important to remember:
The cumulative amount of public subsidies may not exceed 80% of the estimated subsidizable expenditure. This rule applies to all public subsidies (State, local authorities, European Union).
The VAT Compensation Fund offsets the VAT paid by local authorities on their capital expenditure.
The Fonds National d'Aménagement et de Développement du Territoire finances actions to promote the attractiveness and development of territories.
Dotation de Soutien à l'Investissement des Départements (support for departmental investment)
For departmental investment projects
City policy allocation
For disadvantaged municipalities and priority districts
Miscellaneous work of local interest
Parliamentary reserve (abolished in 2017 but replaced by other schemes)
The European Union offers a number of funding programs accessible to French local authorities, representing a major source of financing for structuring projects.
| Fund | Objectives | Eligible communities |
|---|---|---|
| ERDF (European Regional Development Fund) |
|
All communes |
| ESF+ (European Social Fund+) |
|
All communes |
| FEADER (European Agricultural Fund for Rural Development) |
|
Mainly rural communities |
| LIFE (Financial Instrument for the Environment) |
|
All communes |
| INTERREG (European Territorial Cooperation) |
|
Communities mainly in border areas |
| ERASMUS+ (Program for education, training, youth and sport) |
|
All communes |
Advice :
To access European funding, it is advisable to contact the Region, which is the managing authority for European funds, or the national contact points for the programs concerned.
Determine which fund is best suited to your project, based on its nature and objectives.
For structural funds (ERDF, ESF, EAFRD), this is usually the Regional Council. For sectoral programs, consult the national contact points.
Develop a project that meets the eligibility criteria and priorities of the program concerned.
Many European programs require or promote projects involving several partners, sometimes from different countries.
Respond to calls for projects according to the schedule set by the managing authority.
In addition to funding, local authorities can benefit from technical and engineering support to help them design and implement their projects. This assistance is particularly valuable for small communities with limited human resources.
Program for towns with fewer than 20,000 inhabitants with central functions.
Program for the revitalization of medium-sized town centers.
Support network to help residents access public services.
Useful resource :
The platform Aides-territoires lists all the financial and technical assistance available to local authorities. You can search for assistance by region, theme or project type.
How to use it :
Useful features :
Draw up a coherent, detailed project, clearly identifying objectives, timetable, funding requirements and expected results.
Identify the different sources of funding available for the project (endowments, subsidies, European funds, calls for projects, etc.).
Take into account the often annual application deadlines, and prepare applications well in advance.
Put together complete, well-argued dossiers, with all the necessary technical and financial information.
Monitor grant applications and maintain regular contact with funding bodies.
Mention the funding partners in project communications and install the required information panels.
Produce the supporting documents required to obtain payment of subsidies, in accordance with the agreements.
Essential elements for building a solid case :
Tip for maximizing your chances:
Set up an active watch on available subsidies within your local authority, and develop in-house expertise in preparing grant applications. You can also appoint a "grants" contact to centralize information and monitor applications.
Points to watch :
Yes, it is possible to combine several grants for the same project, provided that the 80% ceiling for public aid is respected. For example, a project can benefit from the DETR, the Green Fund and regional aid at the same time. However, certain types of aid have specific non-accumulation rules, which should be checked.
Combined funding is often recommended to optimize the financing of large-scale projects, ensuring that each funder contributes to separate expenditure items or with a clear allocation key.
DGF amounts are generally notified to local authorities in early spring (late March/early April). You can consult this information on the website of the Direction Générale des Collectivités Locales (DGCL) or on the platform dedicated to local authorities. Prefectures also inform local authorities of the amounts allocated to them.
To access your endowment :
Processing times vary from department to department, but applications are generally submitted at the beginning of the year (January-February) for processing in the spring. Notifications are generally made between April and June. We recommend that you consult the specific timetable drawn up by your local prefecture.
Typical calendar :
In principle, work must not begin until the application file is complete and the relevant government department has acknowledged receipt. In certain cases, a waiver may be granted to allow work to begin, but this does not prejudge the actual award of the grant. We recommend that you wait for official notification before committing to any expenditure.
Possible exceptions:
In all cases, a written request must be sent to the funder to obtain authorization to start work early.
To access European funding, you generally need to submit an application to the relevant managing authority, which is often the Region for the main funds (ERDF, ESF+, EAFRD). For programs managed directly by the European Commission, applications are made via dedicated platforms.
Recommended approach :
To maximize your chances of success, it is strongly recommended that you enlist the support of a specialist department (within the Region or a consultant).
The FCTVA is paid out two years after the eligible expenditure has been incurred, under the ordinary law system. However, some local authorities benefit from payment in the same year, or with a time lag of just one year, depending on the advance arrangements they have signed up to.
Payment plans :
Since 2021, the FCTVA processing procedure has been progressively automated, based on local authority accounting data.
As the DGF is calculated according to precise criteria, certain levers can be used to optimize it:
It is also advisable to carry out a comparative analysis of your DGF with similar communes to identify any anomalies or possible optimizations.
Small rural communities benefit from special schemes:
It's also a good idea to get in touch with the département and the region, which often offer complementary schemes tailored to rural issues.
Energy renovation projects can mobilize several sources of financing:
ADEME also offers technical support and financial assistance for preliminary studies (energy audits) and certain works.
State portal for local authorities
Information sheets on local financing
Public finance information
Platform listing all available assistance
Financing and engineering by Caisse des Dépôts
Aid for the ecological transition
National support programs
Detailed explanation of DGF mechanisms
Access to European funds
Overview of support for environmental projects
Application instructions and tips
Support resources available
Association des Maires de France publications
Precise contact details vary from region to region. Consult your local prefecture's website for local information.
The local authority financing landscape is rich and diverse, offering numerous opportunities to support your projects, whether they concern day-to-day operations or future investments.
The key to success lies in a methodical, proactive approach that combines :
More than ever, in a tight budgetary context, the search for funding is becoming a strategic skill for local authorities. This means developing a global vision of available resources and professionalizing this function within the organization.
Don't hesitate to mobilize the support and engineering resources at your disposal to optimize your chances of obtaining the funding you need to carry out your local projects.
Final tip:
Integrate the question of financing into the design of your projects, and not as a later stage. This will help you choose solutions that are easier to finance, and optimize your financing plans.
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