In order to secure additional funding for the development of national defence capacity and strengthening societal resilience, on Wednesday, 3 December, the Saeima adopted in the final reading the Law on the National Defence and Security Fund. The Fund will serve as a tool for attracting additional financial resources and their targeted use with the aim of strengthening national security. The new law is linked with the State budget for 2026.

Chair of the Budget and Finance (Taxation) Committee, Anda Čakša, who oversaw the advancement of the draft laws in the Saeima, stated during the debate: “The Fund will build on the established long-term funding system, providing flexibility for the implementation of short-term and medium-term projects. The creation of this Fund will be a strategic step towards strengthening our national security; it will allow us to quickly respond to emerging threats and make targeted investments for the security and resilience of our society.”

The Law sets out the procedures for the creation, funding, management, and use of the National Defence and Security Fund. The new law will enter into force on 1 January 2026.

The new Fund will serve as an additional and flexible financial instrument for funding key projects in defence and security that fall outside the medium-term budget framework or whose operational needs have changed. According to the explanatory note to the draft law, the Fund will not affect the base funding for the defence sector, but rather serve as an additional mechanism for the strengthening of national and societal security.

The National Defence and Security Fund will be financed from the State budget, donations by natural and legal persons, foreign financial assistance, and other revenues.

The resources of the Fund will be available for the development of the National Armed Forces in line with NATO development goals, as well as for the strengthening of the defence industry and support for military and dual-use defence projects, developing civil defence, crisis management systems, reinforcing national internal and external security, cyber security, and border security,

Furthermore, the Fund will be used to implement military mobility and dual-use infrastructure projects, provide military support for Ukraine, improve the security systems of Latvian diplomatic missions, as well as for civil defence and disaster management measures.

The Law stipulates that management of the Fund will be coordinated by the Ministry of Defence in collaboration with the Ministry of Economics, the Ministry of the Interior, the Ministry of Foreign Affairs, and the Ministry of Transport. These ministries will draft an annual plan for the use of the Fund’s assets, and for the purposes of transparency and promoting public trust in the financial management of public funds, the ministries will have to publish a public report on the Fund revenues, expenses, and results achieved.

Saeima Press Service