Grants & Subsidies

€2,000,000 for social services in Melilla: what the 2026 agreement finances

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Equipo Editorial CambiosLegales
Oct 6, 2026 6 min 6 views

Key data

RegulationResolution of September 23, 2026, from the General Directorate of Family Diversity and Social Services
PublicationOctober 6, 2026
Entry into forceOctober 6, 2026
Affected partiesAutonomous City of Melilla and beneficiaries of its social services
CategoryGrants and Subsidies
Total amount€2,000,000
Fiscal year2026
Legal basisArt. 22.2.c) of the General Subsidies Law (direct award)
Subcontracting limitUp to 70% of total amount
Payment methodAdvance, no guarantee required
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The Autonomous City of Melilla receives €2,000,000 from the State to finance four specific social assistance programs in 2026. The agreement, formalized by the General Directorate of Family Diversity and Social Services, is published in the BOE on October 6, 2026 and enters into force that same day.

The award is articulated under article 22.2.c) of the General Subsidies Law, which allows direct award without competitive bidding when there is a public, social or economic interest that justifies it. There is no open call or competition between applicants: the beneficiary is exclusively the Autonomous City of Melilla.

€2,000,000
Total amount of the 2026 agreement
70%
Maximum subcontractable by Melilla
4
Social assistance programs financed

What does this regulation establish?

The agreement finances four specific social assistance programs in Melilla during fiscal year 2026. Below are all the programs included:

ProgramDescriptionManagement / Entity involved
Residential places for the elderlyFinancing of places in residential centers for elderly people in MelillaAutonomous City of Melilla
Care for people with intellectual disabilitiesCare and support programs for people with intellectual disabilitiesAutonomous City of Melilla
Psychiatric places on the mainlandFinancing of psychiatric care places for Melilla residents in mainland centersAutonomous City of Melilla
Temporary stay apartments for the elderlyManagement of temporary stay apartments for elderly peopleSan Vicente de Paúl (managing entity)

Regarding economic conditions and justification, the agreement establishes the following:

  • Advance payment: the amount is transferred before execution, without need for prior justification.
  • No guarantee required: Melilla does not need to constitute any guarantee or deposit to receive the funds.
  • Subcontracting: the Autonomous City can subcontract up to 70% of the amount (up to €1,400,000) with third parties.
  • Justifiable expenses: cover the entire fiscal year 2026, regardless of the date of agreement signature.
  • Justification to: the Ministry of Social Rights, the General Intervention of the State Administration (IGAE) and the Court of Auditors.

Economic and operational impact

For the Autonomous City of Melilla, this agreement represents a direct injection of €2,000,000 into its social services budget for 2026, with no additional financial cost (advance payment, no guarantee). Operational management is simplified by being able to subcontract up to €1,400,000 with specialized entities.

For third-sector entities and social service providers in Melilla, the possibility of subcontracting up to 70% opens a relevant business window. The San Vicente de Paúl Foundation already appears as the managing entity of the temporary stay apartments program, which illustrates the public-private collaboration model that structures this agreement.

From the perspective of justification, expenses are attributable to the entire fiscal year 2026, which provides flexibility to include costs incurred before the formal signing of the agreement. Accountability is threefold: Ministry, IGAE and Court of Auditors, which implies a significant administrative burden for managers.

Who does it affect?

  • Autonomous City of Melilla: direct beneficiary and responsible for execution and justification of the agreement.
  • Third-sector entities in Melilla: potential subcontractors for program execution (up to 70% of the amount).
  • San Vicente de Paúl Foundation: already designated manager of the temporary stay apartments program for the elderly.
  • Elderly people residing in Melilla: beneficiaries of residential places and temporary stay apartments.
  • People with intellectual disabilities in Melilla: beneficiaries of the specific care program.
  • People with psychiatric care needs in Melilla: beneficiaries of places in mainland centers.
  • Ministry of Social Rights, IGAE and Court of Auditors: bodies with authority to control and audit spending.

Practical example

A non-profit entity with experience in elderly care in Melilla can opt to be subcontracted by the Autonomous City for the management of residential places or temporary stay apartments. With a subcontracting limit of 70% of €2,000,000, the maximum amount that could be channeled through contracts with third parties amounts to €1,400,000.

If that entity manages, for example, the temporary stay apartments program—as San Vicente de Paúl already does—it must bear in mind that expenses are justifiable from January 1, 2026, even if the agreement was signed in September. This allows for the attribution of personnel, rent and service costs incurred during the months prior to signing, provided they correspond to fiscal year 2026 and are properly documented before the Ministry, IGAE and Court of Auditors.

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What should entities do now?

  1. Autonomous City of Melilla: verify that the four programs are operational and that fiscal year 2026 expenses are being recorded with the documentation required for justification before the Ministry, IGAE and Court of Auditors.
  2. Third-sector entities: contact the Autonomous City of Melilla to explore subcontracting possibilities within the 70% limit (up to €1,400,000). Prepare documentation proving technical and financial capacity.
  3. Managers of subcontracted programs (such as San Vicente de Paúl): ensure that all expenses attributable to fiscal year 2026 are properly documented and justifiable before the three control bodies.
  4. Compliance managers: review that subcontracting contracts do not exceed 70% of the total agreement amount and comply with applicable public procurement regulations.
  5. Finance department: record the advance income and plan expense justification before the end of fiscal year 2026, given that reporting deadlines to IGAE and the Court of Auditors are strict.

Frequently asked questions

Why is this subsidy awarded directly without a tender?

Direct award is supported by article 22.2.c) of the General Subsidies Law, which allows this mechanism when there are reasons of public, social or economic interest that justify the absence of competitive bidding. As Melilla is an Autonomous City with its own competencies in social services and with specific needs derived from its geographical situation, the State can channel funds directly through an agreement.

What programs exactly does the €2,000,000 subsidy to Melilla finance?

The agreement finances four programs: residential places for the elderly, care for people with intellectual disabilities, psychiatric places in mainland centers for Melilla residents, and temporary stay apartments for the elderly managed by the San Vicente de Paúl Foundation.

Can Melilla subcontract program management to private entities?

Yes. The agreement allows the Autonomous City of Melilla to subcontract up to 70% of the total amount, which equals a maximum of €1,400,000. The remaining 30% (€600,000) must be executed directly by the Autonomous City itself.

What expenses are justifiable and to whom must accounts be rendered?

All expenses incurred during fiscal year 2026 are justifiable, regardless of the date of agreement signature. Justification must be accredited before three bodies: the Ministry of Social Rights, the General Intervention of the State Administration (IGAE) and the Court of Auditors.

Is a guarantee required to receive advance payment?

No. The agreement expressly establishes that payment is advance and that no guarantee is required from the Autonomous City of Melilla to receive the funds. This simplifies financial management and eliminates guarantee or deposit costs.

Official source

Consult complete regulation in official source

Notice: This article is for informational purposes only and does not constitute legal advice. For specific decisions, consult a qualified professional. Source: https://www.boe.es/diario_boe/txt.php?id=BOE-A-2026-20814



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