Fel rhan o'r dyraniadau a wnaed o becyn Cronfeydd Wrth Gefn Llywodraeth Cymru ar gyfer Ailgreu, roedd £700,000 ar gael i gefnogi'r gwaith o weithredu Deddf Llywodraeth Leol ac Etholiadau (Cymru) 2021.  O hyn, datblygwyd Cronfa Democratiaeth Ddigidol o £500,000 i gefnogi trawsnewid democratiaeth leol yn ddigidol.
As part of the allocations made from the Welsh Government Reserves for Reconstruction package, £700,000 was made available to support the implementation of the Local Government and Elections (Wales) Act 2021.  From this, a Digital Democracy Fund of £500,000 was developed to support the digital transformation of local democracy.