German Federal Budget 2027 Cuts Rail and Cycling Funding

The German cabinet approved the draft federal budget for 2027 on July 6, allocating limited additional money for rail and offering no clear increase for cycling infrastructure. The ecological transport association VCD criticised the plan, noting that an extra €400 million for rail construction is far short of what is needed and that the budget omits €1 billion for rail maintenance and digitalisation. VCD chair Christiane Rohleder warned that cutting investment where the railway system has the greatest backlog is a serious error, and she condemned the continued priority given to roads over rail. Further uncertainty remains over the Climate Social Fund’s future measures and the level of federal support for a nationwide bike‑infrastructure programme, which VCD says is essential to achieve the Vision Zero goal of zero traffic deaths.

The VCD also highlighted the lack of a comprehensive track‑price reform for rail freight and passenger services, calling for broader relief to make rail transport more competitive.