Ecuador's President Daniel Noboa has recently sent the 'Reform Law to the Organic Code of Territorial Organization, Autonomy, and Decentralization' to the Official Registry for the Efficiency and Sustainability of Expenditure by Decentralized Autonomous Governments (GAD). This legislation, approved by the National Assembly on February 20, 2026, received support from the ruling party Action Democrática Nacional (ADN) and its allies, with a total of 77 votes. Notably, the President did not issue any objections to this law, allowing it to proceed directly to enforcement and publication within the week.

The new legislation mandates that 70% of the budgets allocated to GADs must now be channeled toward non-permanent expenditures, focusing specifically on investment and ongoing maintenance of public works. The law prioritizes critical areas including potable water supply and sanitation, urban road infrastructure, and basic infrastructure services. This shift indicates the government’s focus on responsible fiscal management and the provision of essential services to local communities, especially in the context of ensuring sustainability in infrastructure development.

The late publication of this law has raised expectations among various sectors, including urban planners and local government officials, who are now tasked with adjusting their financial projections to comply with the new regulations. By emphasizing funding for non-permanent expenditures rather than permanent costs, the government aims to enhance the quality of life for citizens while ensuring that vital public works are constructed and maintained effectively.