French departments are grappling with a severe budgetary impasse, as rising social spending coincides with a significant decline in real estate-related revenues, projecting a net margin drop to 155 million euros by the end of 2025, down from 5.4 billion euros in 2022.

In response to the financial strain, the 'Départements de France' association has declared that they will no longer undertake new or additional expenditures that are unilaterally decided by the government without full compensation.

Jean-René Cazeneuve, a deputy and former budget rapporteur, has characterized the financial situation for departments as 'critical', raising concerns about the potential cessation of payments for some departments.

The association estimates that unilateral government decisions made since 2022 have resulted in a financial impact of nearly 5.5 billion euros, largely due to increased social spending, while department revenues have decreased by 8 billion euros.

To address these financial challenges, departments are advocating for the establishment of a specific alert committee to assist in preparing the 2026 budget, alongside demanding a 50% state compensation for the individual solidarity allocations they provide.

In a bid to alleviate the fiscal pressure, socialist leader Jean-Luc Gleyze has proposed a modest 0.15% increase in the general social contribution (CSG), which could generate 2.6 billion euros for the departments without directly affecting employees.

Three weeks before this report, right- and center-leaning departments announced their refusal to implement a 1.7% increase in the active solidarity income (RSA) effective April 1, 2025, further complicating the financial landscape.

As discussions for the 2026 budget commence, French departments are intensifying their pressure on the government to address these escalating financial challenges.

In September 2024, the association urged its members to delay the extension of the 'Ségur bonus' for nonprofit health and social workers until the state fully compensates for the annual financial impact of 170 million euros.