The Netherlands is introducing a unified system for funding the reception of refugees starting in July 2026

The Dutch government is reforming the system for funding refugee reception at the municipal level. Instead of several parallel schemes for different categories of people, a single, centralized model will be implemented. Learn more about the new funding rules and the timeline for transitioning to the updated system

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The government of the Netherlands has decided to reform the system for funding the reception of refugees at the municipal level. The changes will take effect on July 1, 2026, and involve a transition to a centralized model that will replace the several parallel schemes currently in place.

Who is covered by the new system, how it will work, and what this means for municipalities—we explain further in this article.

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Why is the Netherlands changing its refugee funding system?

Currently, municipalities in the Netherlands receive funding for refugee reception through several different schemes. Separate funding rules apply to Ukrainian refugees, separate ones to asylum seekers, and yet others to individuals who already have residency status. This fragmentation complicates resource planning at the local level and reduces the efficiency of existing infrastructure.

The reform aims to make the funding system more stable and predictable for local authorities.

By the way, we previously reported that the minimum wage in the Netherlands will increase in 2026.

What does the new unified model entail?

All existing schemes will be consolidated into a single centralized funding system. It will apply to all categories of persons under protection, regardless of their status.

Key changes under the reform:

• the introduction of a single funding system to replace several parallel ones;
• reimbursement of municipalities’ actual expenses—for housing, maintenance, and amenities;
• the ability to plan funding several years in advance;
• additional coverage of administrative costs associated with receiving refugees.

Where can you now apply for temporary protection with the IND in the Netherlands? — we explain it here.

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How will the changes affect the work of municipalities?

The unified model will give municipalities more flexibility in using their housing stock and accommodation centers. Local authorities will be able to allocate available resources to different categories of refugees without being tied to specific funding programs. This will help avoid underutilization of facilities and allow for more efficient allocation of capacity.

The transition to the new system will take place gradually. From July 1 to December 31, 2026, the old and new models will operate in parallel. This approach gives municipalities time to adapt and should prevent disruptions in the funding process.

Changes to the refugee reception system may affect the conditions of stay and available support programs for foreigners in the Netherlands. The Visit Ukraine portal offers the opportunity to receive personalized legal advice from an immigration lawyer who can help you navigate the current rules and procedures.

Schedule a consultation to get answers to your questions about legal residence, status, and rights in the Netherlands!

Reminder! In a previous article, we discussed how the Netherlands is restricting refugees’ rights.

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