A political dispute has broken out inside Finland’s governing coalition after Social Affairs and Health Minister Wille Rydman unveiled new funding criteria that could prevent organisations serving immigrants and other identity-based communities from receiving state support.
The changes affect grants distributed through the Funding Centre for Social Welfare and Health Organisations (STEA), which allocates public funding to charities, foundations and non-profit groups working in the social and health sectors.
Under the new rules, organisations whose activities focus mainly on a specific non-health-related background or identity group would no longer qualify for funding. The criteria would also exclude many organisations engaged primarily in advocacy, policy work or advisory services.
The announcement triggered criticism from opposition parties, civil society organisations and several members of the government itself.
The revised framework comes as the government prepares to reduce STEA funding by around one-third next year. Available funding is expected to fall to approximately €190 million in 2027, down from current levels.
Rydman said the changes are intended to prioritise direct services and face-to-face support for people in need. Funding decisions will increasingly focus on measurable outcomes, demonstrated demand and activities directly linked to health promotion or functional limitations.
The new criteria also state that umbrella organisations will receive funding only in exceptional cases, while wealthier organisations will face stricter self-financing requirements.
Particular attention has centred on a provision excluding organisations whose work is directed mainly at a single identity or background group without a clear health-related purpose.
Critics argue that the wording places immigrant organisations, refugee support groups and associations representing sexual and gender minorities at risk of losing public funding.
Veronika Honkasalo, a member of parliament from the Left Alliance, filed a formal complaint with the Chancellor of Justice over Rydman’s actions.
According to Honkasalo, the minister has introduced funding criteria that discriminate against certain groups and narrow the role of civil society organisations.
“It appears obvious that the decision is aimed at organisations defending the rights of sexual and gender minorities and those working with immigrants and asylum seekers,” she said.
Honkasalo argued that public funding rules should support equality, non-discrimination and fundamental rights rather than limit the activities of organisations representing specific communities.
Education Minister Anders Adlercreutz of the Swedish People’s Party and Local Government Minister Anna-Kaisa Ikonen of the National Coalition Party have also criticised Rydman’s approach and insisted that the government should review the matter collectively.
Speaking in parliament, Prime Minister Petteri Orpo said the issue was too significant to be handled by a single minister alone. He noted that STEA funding represents nearly €200 million in public spending and carries broader political and social implications.
Orpo said coalition parties had agreed that decisions regarding the distribution of funding should be made jointly and confirmed that the government would review the criteria before its summer recess.
“These grants are politically and fundamentally important,” Orpo told reporters.
Despite the criticism, Rydman has maintained that setting funding criteria falls within his ministerial authority and argued that the current rules remain in force. According to the minister, government discussions should focus on individual funding decisions later in the process rather than the criteria themselves.
HT