Madrid’s 2026 Budget: Social Spending Takes Priority
The government of the Community of Madrid has approved the draft budget for 2026, which will be the region’s largest in history. Total funding will exceed 30 billion euros, with social spending reaching a record high. Special attention has been given to housing: for the first time, over 700 million euros has been allocated for this purpose, a 2.5% increase compared to last year.
New Opportunities for Young People and Vulnerable Families
Regional authorities intend to expand access to housing for young people and families facing difficult life situations. As part of the social housing construction program, 704 new apartments are set to be delivered in cities such as Majadahonda, Móstoles, Villa del Prado, and Madrid. This represents a third of the total projects planned for this legislative term. In addition, under the Plan Vive initiative, construction of 3,200 affordable rental apartments will be completed by the end of next year across 13 municipalities, including Torrelodones, Boadilla del Monte, Pinto, Colmenar Viejo, Aranjuez, Arganda del Rey, Humanes de Madrid, Torrejón de la Calzada, Moralzarzal, Navalcarnero, Daganzo de Arriba, Velilla de San Antonio, and Villavilla. A significant share of these projects is being implemented with support from the European Next Generation funds.
Expanding Support Programs: Mortgages and Rentals
In 2026, the ‘My First Home’ program will continue to expand, having already helped more than 5,000 local residents secure financing to purchase property. The eligible age for participants has now been raised to 50, and the maximum mortgage can reach up to 100% of the property value, including new builds. A total of 40 million euros has been allocated for the program: 25 million for the main initiative, 5 million for acquiring new properties, and another 10 million to support state-protected projects through Avalmadrid.
In addition, regional authorities are stepping up measures to support both tenants and homeowners. The Plan Alquila program fosters better collaboration between landlords and tenants, and also offers extra subsidies for rent, renovations, energy efficiency improvements, and building accessibility. Notably, grants are available for installing elevators in residential buildings, aiming to improve comfort and accessibility for all residents.
Infrastructure projects and transport development
The 2026 budget includes a substantial increase in funding for transport and urban infrastructure. A total of 282 million euros has been allocated for the development and modernization of the metro, including lines 5, 11, and 1. Plans include the construction of new transport hubs, such as Conde de Casal and the region’s first comarcal transfer station in Alcalá de Henares. Major projects are also moving forward—such as the creation of the Cities of Justice and Health and the expansion of key public service facilities.
Social support and new legislative initiatives
The 2026 budget allocates a record nearly 2.9 billion euros to the social sector, aiming to support families, youth, and vulnerable groups. This funding will expand services for the elderly, people with disabilities, and those facing difficult life circumstances. Among the priorities are the development of cybersecurity, support for entrepreneurs, improvements to the employment system, and disaster prevention.
Two new laws stand out on the legislative agenda: one combating excessive regulation, and another supporting family businesses. These are expected to create more favorable conditions for economic growth and strengthen the position of small and medium-sized enterprises in the region.
