Executive Summary:
- To pay for his war against Ukraine and to deflect criticism from himself, Russian President Vladimir Putin has imposed a system of unfunded mandates on Russia’s federal subjects. He has ordered the regions to pay for various programs but has not given them the money to do so.
- As a result, many regions and republics today cannot fund healthcare and other basic services. This development has sparked widespread public anger and contributed to a serious decline in public support for Putin and his policies.
- These developments have angered some regional officials and have been exploited by the opposition. Now, Putin, instead of providing funds, has told them to identify the causes of this dissatisfaction. If they do, that could end by harming Putin.
Russian President Vladimir Putin has imposed a system of unfunded mandates on Russia’s federal subjects to pay for his war against Ukraine and deflect criticism. He has ordered the regions to finance various programs without the necessary funding either by allowing them to keep more taxes that they collect or returning more tax money to them. The most notorious of these mandates is the Kremlin’s call for the regions and republics to pay enormous bonuses to those who volunteer to serve in the military. Many regions can now no longer fund healthcare, housing, and other basic services—a development that has sparked widespread anger and even large-scale protests. This has contributed to the serious decline in public support for Putin and his policies (Window on Eurasia, April 1, 2023, April 5, December 6, 2025; Analiticheskiy Center VITSOM, December 2, 2025; Svobodnaya Pressa, December 10, 2025; see EDM, March 19, April 7).
Private citizens in the regions are not alone in their anger. Many opposition party activists and regional officials are as well. That has prompted Putin to attempt to show his concern, not by providing the necessary funds, but by demanding that regional officials eliminate the causes of public dissatisfaction (Svobodnaya Pressa, April 7, 10). Some of these officials are likely to point out the obvious source of these problems—unfunded mandates—and come together to challenge Putin’s position on them. This is especially dangerous when elections are looming, and opposition parties are exploiting popular anger, despite the Kremlin’s control over regional leadership (Zebra TV, April 6).
On April 3, in a transparent effort to suggest he was concerned about the results of his optimization program, Putin instructed the leaders of ten federal subjects to take immediate action to eliminate the causes of public dissatisfaction with healthcare services (President of Russia, April 3). His decision to single out only 10 regions suggests an effort to present the problem as limited, even though most regions face similar pressures (Svobodnaya Pressa, April 7). Those chosen have promised to implement Putin’s plans, but opposition parties, the population, and commentators doubt that there will be any meaningful improvements until the issue of funding is addressed—something unlikely to happen as long as Putin is struggling to pay for his war against Ukraine and appears willing to cut services for ordinary Russians to do so (Window on Eurasia, December 2, 2025; Svobodnaya Pressa, April 7, 10). Commentary condemning the unfunded mandate arrangements reflects not only the personal opinions of their authors but also the frustration of many in the population and the regional elites over Moscow continuing to take two-thirds of all tax money collected while returning only a small portion in federal funding. At the same time, Moscow demands that the regional governments finance additional obligations such as bonuses for soldiers who enlist to fight in Ukraine (see EDM, October 21, 2025, February 12). Additionally, some Duma deputies are now questioning whether unfunded mandates can continue given their negative effects in the regions (RTVI, January 11, 2025). Some regional leaders have ended the optimization program locally despite federal pressure, forcing them into deeper debt and raising questions about future financial stability (RBC, January 22).
Funding for healthcare operations has become increasingly controversial since Putin launched his optimization campaign to close smaller medical centers and support systems a decade ago. Strains on public services have intensified since the full-scale invasion of Ukraine, when forced optimization hit schools, post offices, and local infrastructure (Window on Eurasia, December 2, 6, 2025; see EDM, February 12). Such complaints have gained traction not only because they are causing real suffering in many parts of Russia, where people no longer have access to nearby medical care, but also because saving or restoring such medical points is viewed by many Russian experts as essential if Russia is to overcome its demographic decline. Thus, stances that might otherwise be viewed as direct opposition to the Kremlin can and have often been presented as supportive of Putin’s other goals (see EDM, October 24, 2023, April 29, 2025).
Putin’s decision to call on regional leaders to focus on public unhappiness over systemic medical problems is a response to polls showing a decline in his popular support ahead of upcoming Duma elections in September. The Communist Party of the Russian Federation (KPRF) and other opposition parties are highlighting problems in healthcare caused by Putin’s unfunded mandate system to gain support, and they are likely to increase their rhetoric as the elections approach. Putin clearly wants to show that he is concerned with the problems of the Russian people, but if his United Russia party is to avoid embarrassment in the elections, they need to address this funding issue. That will likely lead some regional leaders to talk, as they have in the past, about a more equitable distribution of resources and about more money being retained in their federal subjects or returned to them as grants to quell the expressions of discontent Putin is now acknowledging.
Given the federal government’s enormous and exploding deficit this year, largely as a result of Putin’s war against Ukraine, there is little chance of that outcome as long as the Kremlin leader remains in power and his war continues. This issue may seem minor, but it could spark a new discussion about the need for more genuine federalism in the Russian Federation. This discussion will focus on the effects of Putin’s power vertical, including the extraction of ever more resources from the federal subjects and the return of ever less funds to support local populations. Propaganda moves, such as Putin’s call for 10 regions to figure out how to overcome public dissatisfaction, will not be enough to resolve such problems. They may very well become yet another example of how Putin, in pursuit of an outcome he seeks, risks producing unintended consequences.
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