A. M. 
The Legislative Assembly repealed the Municipal Support Fund Law to Address Municipal Projects, Social Activities or Services, created by legislative decree 477 on august 16, 2022. The decision, taken with 56 votes in favor, responds to the fact that the reasons that justified its issuance are no longer applicable after the recent territorial restructuring of the country.
Since june 2023, El Salvador went from having 262 municipalities to only 44, after the approval of the Special Law for Municipal Restructuring. This change eliminated the distribution of resources that the law sought to complement, affecting its relevance in the new administrative context.
The original purpose of the legislation was to support municipalities with additional funds to cover basic services such as waste collection and electric lighting. In addition, it was used for social programs, including scholarships, entrepreneurship, projects for women and youth, as well as initiatives for the elderly.
During the 39th plenary session, legislators pointed out that, although the resources were used at the time to strengthen the social fabric, they are no longer justified in the current scheme. This motivated their elimination as part of the consolidation of a more centralized administration.
Following the repeal, the Ministry of Finance was empowered to manage the return of municipal support funds to state coffers, ensuring their proper disposal in the new administrative guidelines.
The decision reflects the authorities’ commitment to optimizing public resources and adapting to the structural reforms promoted in the country.
