Finland plans to merge its social and healthcare organization funding agency into the government ministry. The State Treasury's SOTE agency (STEA) currently distributes grants to over 720 organizations annually.
Starting in 2027, STEA will become part of the Ministry of Social Affairs and Health. The agency currently employs nearly 40 officials who process applications and prepare distribution proposals.
Critics fear the merger will increase political influence over funding decisions. Organizations worry about losing independence from government direction.
Veli-Mikko Niemi, the ministry's administrative director, says ministers already make final funding decisions. He claims the change won't fundamentally alter this process.
Sari Aalto-Matturi chairs STEA's advisory board and leads mental health organization Mieli. She says STEA's independence has protected organizations from political steering.
Funding for social and healthcare organizations faces substantial cuts. Grants drop from 384 million euros this year to 243 million euros by 2027.
Government parties view STEA's current structure as oversized relative to reduced funding levels. They note other ministries distribute similar grants through regular administrative work.
STEA began operations in 2017 when gambling monopoly restructuring transferred funding responsibilities. The agency's current financing model changed earlier this year, with funds now coming directly from the state budget.
The consolidation reflects government efforts to streamline administration during spending reductions. This centralization risks making funding decisions less transparent and more politically driven.