About 6.5 billion euros, or $7.4 billion, will be provided as grants, while 3.5 billion euros, or $4 billion, will be issued as loans.
The Council said the approval followed Hungary’s submission of a new plan.
Implementation of the previous plan had been delayed and ultimately became impossible because of “increasing costs driven by fluctuating energy prices, unexpected changes in the geopolitical context, unforeseen implementation challenges […] and other circumstances,” the Council said.
The issue concerned 10.4 billion euros in funding to which Hungary was entitled under the EU’s post-COVID-19 Recovery and Resilience Facility, or RRF.
The funds had been delayed because of Budapest’s violations of EU law under Prime Minister Viktor Orbán.
Orbán had led Hungary’s government since 2010 and stepped down only after the parliamentary elections in April 2026.
Election winner Peter Magyar formed a new government and revised the recovery plan previously submitted by Orbán’s administration.
Magyar reached a political agreement with European Commission President Ursula von der Leyen in May on 16.4 billion euros, including 10 billion euros from the RRF, 4.2 billion euros in cohesion funds linked to anti-corruption measures and judicial reform, and 2.2 billion euros tied to academic freedoms.
Hungary must reach 27 so-called super milestones by Aug. 31, submit payment requests by the end of September and complete disbursements by the end of December.
Budapest will have to repay about 1 billion euros in advance payments it has already received if it fails to meet those commitments.