Fifa has agreed in principle to increase World Cup 2026 prize money and participation fees, with details of the enhanced funding to be approved at a meeting of the Fifa Council in Vancouver this week.

World football’s governing body has responded to concerns raised by several national associations – first reported by The Guardian in February the high costs of travel, operations and tax in the United States in particular this summer will result in them losing money, even if their side has a successful tournament and reaches the latter stages.

Fifa had previously announced a record World Cup prize fund of $727m (£539m) last December, with each of the 48 competing teams receiving a minimum of $10.5m (£7.4m) and the winners getting $50m (£37m), but following discussions with a number of national FAs in recent weeks, it will be increased further.

In addition, the development funding handed out to all 211 Fifa members will also be increased from the projected $2.7bn (£2bn) it was already due to distribute over the next four-year cycle.

Each national association was due to receive a guaranteed payment of $5m (£3.7m), with the six confederations each receiving $60m (£44.5m) to help develop football in their regions, with these payments to increase.

“Ahead of a Fifa Council meeting in Vancouver, Canada, on 28 April 2026, Fifa can confirm it is in discussions with associations around the world to increase available revenues,” a Fifa spokesperson said in a statement.

“This includes a proposed increase of financial contributions to all qualified teams for the Fifa World Cup 2026 and of development funding available to all 211 member associations,” the statement added.

“The Fifa World Cup 2026 will be groundbreaking in terms of its financial contribution to the global football community, and Fifa is proud to be in its strongest ever financial position to benefit the global game through its Fifa Forward programme. Subject to discussions, further details will be provided in due course.”

Fifa is projecting revenues of $13bn (£9.6bn) in the four-year cycle concluding with this summer’s World Cup, of which $9bn (£6.67bn) will be brought in by the tournament alone. According to sources, Fifa’s strong financial position has enabled them to increase prize money and participation payments.

The organisation’s 2025 annual report stated that $11.67bn (£8.65bn) of its revenues would be redistributed “to boost global football development,” a 20% rise on the previous current cycle, and that figure will now increase further.

Many of the bigger European associations, including the English FA, are understood to have petitioned Fifa to increase its prize fund amid concerns they would lose money on this summer’s World Cup.

Under Fifa’s initial distribution plan, merit payments only increase incrementally for progressing through the rounds. An additional $2m (£1.5m) is paid for reaching the last 32, $4m more for getting to the last 16 and an extra $8m for qualifying for the quarter-finals, with the biggest leap reserved for semi-finalists and finalists.

As a result, many European football federations claimed they would lose money unless they reached the last four and asked Uefa to intervene on their behalf, with sources involved in those discussions praising Fifa for listening to their concerns.

In addition to the high costs of doing business in the US, financial concerns have been increased by the uneven tax burden facing national associations.

While Fifa has tax-free status it was unable to negotiate exemptions for the 48 qualifiers, as it has done in previous tournaments. National associations must pay a range of federal, state and city taxes on their earnings, which vary significantly.

There is no state tax at all in Florida, where seven games will take place in Miami, whereas it is 10.75% in New Jersey, whose MetLife Stadium will stage the final, and 13.3% in California, where Los Angeles and San Francisco will host games.