Abstract: The State Regional Development Fund is one of the tools of the State Budget for financing the development needs of regions and individual communities. The article examines the peculiarities of financing regional development projects and programs with the funds of the Fund and the influence of the war factor on this process. The financing mechanism of regional programs is regulated by the Budget Code of Ukraine and Government resolutions, and funding priorities are determined by strategic documents — the State Strategy for Regional Development of Ukraine and regional development strategies. However, the full-scale war nullified the implementation of all "development" programs, putting the needs of restoration of the de-occupied and front-line territories in the first place. What is the role of the Fund’s funds in these processes, what is the mechanism of their allocation to recovery programs, in what proportions will the Fund’s funds be allocated — these questions currently remain open and require regulatory coordination. Since in 2023, the application of the requirements of the Budget Code regarding the direction and distribution of FDRR funds and the full implementation of the State Strategy for Regional Development and relevant regional development strategies will become more difficult, draft law No. 9165 has been developed, which provides for a review of the role of the DFRD. Currently, the funds of the Fund will become one of the sources of financing the reconstruction programs of the de-occupied and front-line territories, which host a large number of internally displaced persons. All this requires a review of both the priorities defined by the State Strategy for Regional Development and the regulatory support for these processes. In particular, it is planned to change the distribution and use of DFRD funds in 2023 regarding the distribution criteria between the AR of Crimea, regions, and the cities of Kyiv and Sevastopol; the norm regarding cofinancing in the amount of at least 50 % for the budgets of urban territorial communities: the cities of Kyiv and Sevastopol and those with a population of more than 225 thousand people; voting of citizens in Diya for projects previously selected by the Ministry of Regions.