German Federal Government Increases Rail Infrastructure Funding for 2027

The German federal cabinet’s draft budget for 2027 proposes raising investment in new construction and expansion of the rail network from about €1.8 billion to €2.2 billion. The increase comes from the transport ministry’s individual plan, with additional funds allocated by the defence ministry for routes deemed militarily essential. While the budget emphasizes continued renewal of existing tracks, the ministry seeks to accelerate new‑build projects to improve network reliability.

Industry reactions were mixed. The Association of Private Freight Railways welcomed the higher allocation for expansion but warned that a planned cut in track‑price subsidies—from €345 million in 2026 to €200 million in 2027—would raise freight costs and push cargo back onto trucks. "Werden die Fördermittel jetzt gekürzt, verteuert die Bundesregierung den Schienengüterverkehr – und sorgt für weitere Rückverlagerung vom Güterzug auf den Lkw," said Neele Wesseln, the association’s managing director. The transport consumer group VCD also criticised the overall funding split, arguing that cuts to the existing network’s €15 billion budget and reduced digitalisation funds jeopardise the rail system’s competitiveness.