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The Federal government has allocated RM4.06 billion for rural water supply infrastructure in Sabah, with the funds flowing directly to the state government to address water shortages in remote communities.
Sabah's government is pushing for the remaining RM900 million of a promised RM1.5 billion special grant under the Malaysia Agreement 1963, with a key federal meeting scheduled to address the outstanding payment and grant computation methodology.
Prime Minister Anwar Ibrahim has emphasised that substantial development allocations to Subang and Petaling Jaya are intended purely for public benefit, not political advantage for the constituencies' representatives.
Melaka has been awarded RM9.801 million under the Ecological Fiscal Transfer programme for 2026, supporting biodiversity conservation and environmental sustainability. The state will also host the National Environment Day celebration in September.
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Prime Minister Anwar Ibrahim has reaffirmed the Federal Government's commitment to providing fair and equal assistance to all Malaysian states, regardless of whether they are led by ruling or opposition parties, specifically highlighting Kelantan and Kedah.
Prime Minister Anwar Ibrahim has signalled that Putrajaya will not automatically fund cost increases for state-led projects, insisting any additional allocations or loans must be renegotiated.
Prime Minister Anwar Ibrahim has confirmed that the previous Warisan-led Sabah government previously endorsed rising special grant allocations for the state, with amounts nearly doubling from RM53.4 million in 2020–2021 to RM106.8 million in 2024.
The federal government's senior political advisor has rejected claims of political bias in resource allocation, arguing that development decisions are based on economic potential rather than political affiliation.
Sarawak Premier Tan Sri Abang Johari Tun Openg has indicated the state would accept a higher special grant under Article 112D of the Federal Constitution, provided the federal government's finances permit such an increase.
DAP politician Lim Guan Eng has pressed Prime Minister Anwar Ibrahim to immediately rectify Penang's RM2.8 billion federal funding shortfall spanning 2023 to 2025, citing the state's developmental needs.