Further changes for the 2026 season: the FIA announces new concessions for the teams
The 2026 Formula 1 season is approaching, and with it comes a new wave of regulatory changes that will deeply reshape the sport. Alongside the technical updates already confirmed, the FIA has announced another important change that directly concerns the teams. This development comes after lengthy negotiations and concessions, designed to find a compromise between the different interests at stake.
Explaining the reasons behind the decision was Federico Lodi, the FIA’s Director of Financial Regulations. In an exclusive interview with RacingNews365.com, he described how the new framework was shaped by competing needs and constant mediation: “If we had written the rules by ourselves, they probably would have been different. But we need the consensus of all the teams, and that is why we ended up with 20–25 exceptions instead of the five or six we would have preferred.”
From the 2021 budget cap to the 2026 revision
The budget cap was first introduced in 2021 with an initial limit of $145 million. In the following years, it was progressively reduced, dropping to $135 million between 2023 and 2025, with adjustments linked to global inflation.
For 2026, however, the limit will rise to $215 million (around £159.6 million or €183.1 million). According to Lodi, this should not be considered a true increase, but rather a recalibration: “The $215 million cap is the result of accumulated inflation since 2021 and the inclusion of costs that were previously outside the budget cap framework.”
A special case is that of Audi, which is preparing to make its debut in Formula 1 in 2026. The German manufacturer will be allowed a higher budget, as its staff based in Switzerland—where the team will be headquartered—receive salaries between 35% and 45% higher compared to the United Kingdom and Italy, where most of the other teams operate.
A self-regulating system
Lodi also stressed that, despite the changes, the real impact on team spending will be minimal. The move is more of a rebalancing than a genuine budget increase. In fact, he spoke of a “self-regulating” formula: the aim is to give teams freedom in how they allocate their resources, without strict limitations on specific expense categories. “The teams have $215 million at their disposal: it is up to them to decide whether to invest in mechanics, in young talent, or in other areas. In the end, the balance finds itself.”
With the arrival of new manufacturers and the many innovations expected for 2026, this latest adjustment comes within a context already full of anticipation and uncertainty. The feeling is that the future of Formula 1 will increasingly become not only a technical challenge, but also an economic and managerial one.
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