The current situation is completely abnormal, the disappointment and anger of families are understandable, and yet – this could not have been a surprise to the authorities. The previous government already started to reduce the amount of support, and to eliminate waiting lists – which families could endure, but politicians could not – the current system was introduced – applications are accepted as long as there is money available to distribute, and then the system closes, the queue “resets” and good luck is wished for the next year.
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Due to rapidly rising housing prices and decreasing affordability, due to wider word-of-mouth information, the number of families applying for support increases every year. And the funds are continuously reduced – this year only 5.6 million euros, whereas previously at least 10 million were allocated annually. Let’s agree, on a nationwide scale, when residents of big cities can also apply for support, this is just crumbs. And this was proven by the long-awaited and so disappointing morning of May 19 – funds lasted only 8 minutes.
After the scandal, the ministry found another 5 million overnight, almost doubling the program’s funds. That this was not done when planning the 2026 budget or approaching the program day, let’s attribute to the ministry’s lack of political insight. The bigger problem is that this does not solve anything fundamentally – hundreds of families did not even have the opportunity to submit an application, and those who managed, even with the additional millions, may not receive support. During those minutes and the remaining hours of the day for submission through municipalities, over 1.3 thousand applications were submitted, and the amount needed to finance them exceeds 17 million euros.
The same situation will occur with the regional program for support in purchasing the first home, which has 8 million allocated. Perhaps more families will receive support because big cities and some ring and resort municipalities are not included in this program, but a significant portion of applicants will be disappointed and will have to wait for next year.
This happens because neither the previous nor the current government answers the main question – what is intended to be achieved with these programs? Is it better for housing support to be targeted or universal? Currently, almost everyone can apply for housing support, regardless of family composition, income (an incentive to live in regions), territory (support for purchasing the first home), or other criteria.
Universality is favorable to families and clearly shows the state’s priority, but it only works if enough, that is a lot, of funds are allocated. Trying to provide universal support with such limited resources as in this case will result in the same outcome every year – increasing disappointment with the state. Imagine if when starting child benefits, they were only planned for the first ten thousand who managed to fill out requests in the SPIS system. And for the others, almost half a million children, we would wish luck until next year when the window opens again. Universal support works when there is money for everyone.
If it is decided that support should be targeted, the government could direct the same amount according to its policy priorities. Perhaps priority would be given to large families, using this program to encourage birth rates, perhaps more support would be given to poorer families or those raising children with disabilities, or maybe help would be chosen for families where children are raised by only one parent. Choosing any criterion or several of them would significantly affect the number of recipients and increase the likelihood of linking support distribution to set goals. But are these goals set?
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Now the choice is to please everyone and anger everyone at the same time. As if sending a message that almost everyone can receive support, but in practice almost no one gets it. A decision is needed now – significantly more funding or narrower accessibility. What will the authorities choose?
Alongside these, so far very minimalist and tension-inducing programs, I suggest fundamentally looking for new ways that would ensure families the opportunity to acquire housing. Housing affordability has long become a huge problem in Lithuania, affecting people’s sense of security, quality of life, and likely the decision on whether and how many children to have.
A solution here could be a national-level housing affordability fund. The housing fund, with the help of the European Investment Bank, would be financed by the state using funds from existing first home programs, municipalities aiming to attract newcomers or retain young families, businesses encouraging their employees and offering contributions to the housing fund as an additional incentive, and residents themselves, who would have to allocate their share to receive support.
Such housing funds already operate in neighboring countries, and Lithuania, since the first considerations about it, is already counting the third term (such a fund proposal was formed in the last years of my ministry) and, unfortunately, not a step has been taken. Considering the increasing housing (un)affordability, it should be clearly stated – we are rapidly sliding downhill. Funds accumulated in the fund would not only be distributed but also invested, thus growing the available capital and ensuring the possibility for more residents to benefit from support.
The emergence of such a fund, I think, would be an important message to families who want to settle and raise children in Lithuania – the state sees you and is looking for solutions together. Due to the possibilities of the European Investment Bank, additional funds from business, and investment opportunities, such a fund could much better meet the housing supply needs.
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