Colombia’s Milagro Fund Begins Operations to Finance Earthquake Recovery

Colombia's newly operational Milagro Fund aims to finance earthquake recovery efforts following a devastating magnitude 7.4 quake that struck in August 2026. Created by President Abelardo de la Espriella, the fund pools public and private resources to aid in humanitarian aid, service restoration, reconstruction, and economic recovery in affected areas. Initially, it will receive US$311 million (COP 1 trillion), with an additional US$840 million (COP 2.7 trillion) expected by November 2026.

The United Nations Development Programme (UNDP) estimated the earthquake caused direct physical damage worth US$13.1 billion (COP 42.1 trillion), affecting homes, infrastructure, and essential services in regions like Risaralda, Valle del Cauca, Choco, Caldas, and Quindio. The fund was established to complement existing emergency response mechanisms, particularly the National Disaster Risk Management Fund, which was designed for the initial response rather than coordination of funding sources and reconstruction payments.

Authorized to finance a wide range of programs including humanitarian assistance, housing, health, education, transportation, and infrastructure repairs, the Milagro Fund is structured as an autonomous estate with a Board of Directors comprising presidential representatives, departmental and ministry delegates. Its resources can be sourced from Colombia's national budget, public and private donations, departmental contributions, special funds, public credit operations, and in-kind contributions.

The Board oversees the fund's operations, ensuring transparent tracking of transactions and direct payments to beneficiaries once conditions are met.