The Union Government has released XV FC grants for Rural Local Bodies during FY 2025–26, disbursing the 1st installment of untied grants amounting to Rs.127.586 crores for Tamil Nadu of the financial year 2025-26 (covering 2901 eligible Gram Panchayats, 74 eligible Block Panchayats, and 9 eligible District Panchayats) and Rs.214.542 crores for Assam of the financial year 2024-25 (covering all 2192 eligible Gram Panchayats, 156 eligible Block Panchayats, and all 27 eligible Zilla Parishads).

Government of India through Ministry of Panchayati Raj and Ministry of Jal Shakti (Department of Drinking Water and Sanitation) recommends release of XV-FC grants to States for Rural Local Bodies (RLBs) / Panchayati Raj Institutions (PRIs), which are then released by Ministry of Finance. The allocated grants are recommended and released in 2 installments in a financial year. While the Untied Grants will be utilized by RLBs/ PRIs for location-specific felt needs, under the Twenty-Nine (29) subjects enshrined in the Eleventh Schedule of the Constitution, except for salaries and other establishment costs. The Tied Grants can be used for the basic services of (a) sanitation and maintenance of ODF status, and this should include management and treatment of household waste, and human excreta and fecal sludge management in particular and (b) supply of drinking water, rainwater harvesting and water recycling.