Natural disaster fund expected to grow 0.5% in 2026

The federal government is proposing a mere 0.5% increase to address natural disasters next year, according to the 2026 Draft Federal Expenditure Budget (PPEF).

If the Claudia Sheinbaum administration's proposal is approved, the government would allocate a total of 19.43 billion pesos through the Natural Disaster Fund (Fonden), which ceased to operate as a trust years ago.

In 2021, the previous administration eliminated the Fonden trust fund, making it a budget program included in Section 23 of the budget, which refers to Salary and Economic Provisions.

“Fonden is an intergovernmental and interinstitutional coordination program that aims to execute actions, authorize, and apply resources to mitigate the effects of a natural phenomenon, in accordance with applicable provisions. This program provides support to federal entities, as well as agencies and entities of the Federal Public Administration, when the damage caused exceeds their financial and operational response capacity within the framework of the National Civil Protection System,” explained the Ministry of Finance and Public Credit (SHCP) in the PPEF.

The Fonden trust fund, as it originally began, was established in 1999 as a budgetary mechanism to support the rehabilitation of infrastructure, whether federal, state, municipal, and/or housing for the population. To allocate the funds, a state of emergency had to be declared.

However, during the previous administration, the trust fund was eliminated along with 108 others, citing corruption and mismanagement. Thus, the Fonden remained in the budget as a budgetary program.

In this regard, Jorge Cano, coordinator of the Expenditure and Accountability Program at México Evalúa, explained that the main difference between being a trust and now being a program is that previously, if all budgeted resources were not spent in a year, they could be accumulated in the following year's budget; now, if there is a surplus, it must be returned to the federation.

Regarding resources, he indicated that what is proposed is insufficient to address climate adversities, especially in an environment where the effects of climate change are becoming increasingly visible.

Prevention

For resources allocated to natural disaster prevention, the Ministry of Finance proposes a budget of 246 million pesos, according to the 2026 PPEF.

These funds would go to the Natural Disaster Prevention Fund (Fopreden), which would also result in an increase of just 0.5 percent.