Parliament paves the way for a new round of funding to alleviate the chaos in Portuguese nurseries

With thousands of families on waiting lists, the publication of Resolution of the Assembly of the Republic No. 128/2026 urges the government to urgently strengthen social care provision for young children, through a new wave of facilities under the Social Equipment Network Expansion Programme (PARES).

The political promise of free nurseries in Portugal faces its greatest survival test in 2026. Confronted with the alarming reality of thousands of parents still unable to secure a place for their children — with never-ending waiting lists and a frantic rush to the Social Security's new digital applications platform — Parliament has decided to act.

The Resolution of the Assembly of the Republic No. 128/2026 has been formally published in the Official Gazette, explicitly recommending that the Government urgently strengthen social care provision for young children through the launch of a new wave of facilities under the PARES (Social Equipment Network Expansion Programme).

More than a mere political recommendation, the document serves as the green light and legal basis the Executive needed to inject capital into the system, opening a historic window of opportunity for the funding and construction of new nurseries, as well as for the refurbishment of existing infrastructure.

A System Overwhelmed by Demand

The crisis the country is experiencing does not stem from a lack of funding for monthly fees — secured by the "Creche Feliz" ("Happy Nursery") scheme — but rather from structural overcapacity. The public network and the social and solidarity sector (IPSS) are historically full, particularly in large urban centres and the highest-pressure demographic peripheries, such as the Lisbon Metropolitan Area (with municipalities such as Sintra, Amadora and Seixal at breaking point) and Porto.

The integration of for-profit private nurseries into the free-provision ecosystem, whilst serving as a short-term fix in recent years, has proved insufficient. The diagnosis that prompted Parliament to pass this legislation is clear: without bricks, mortar and new rooms, the right to free nursery provision will remain a legal mirage for thousands of families.

The Impact of Resolution 128/2026: Where Does the Opportunity Lie?

The core of the new strategy involves reactivating and financially strengthening PARES. For Private Social Solidarity Institutions (IPSS), Misericórdias, Local Development Associations and, critically, for Local Councils, this resolution opens the door to applications for public funding.

The new funding calls are expected to prioritise:

1. New-build construction of early years facilities in municipalities identified as "red zones" of need.
2. Refurbishment and expansion of obsolete buildings belonging to the State or local authorities to accommodate new rooms.
3. Incentives for the conversion of underused sporting or community spaces into integrated social care provision.

It should also be noted that Parliament passed the Resolution No. 127/2026 along similar lines, which goes hand in hand with this effort by recommending significant tax incentives for companies that create nurseries within their own premises for employees' children — outlining a tripartite strategy encompassing: the Social Sector, Local Authorities and the Business Community.

The Implementation Challenge and Next Steps

The launch of a new PARES wave requires the Government to publish, in the short term, the ministerial orders defining the budgetary allocations, the public co-financing rates (which under PARES typically cover a majority percentage of eligible investment) and the eligibility criteria.

For social investors and local authorities, now is the time to prepare. Those with architectural plans already drawn up or available municipal land will be at the forefront to absorb the incoming funding.