German government boosts rail infrastructure funding to €2.2 billion for 2027

The German federal cabinet proposes raising subsidies for new and expanded rail projects from €1.8 billion in the current period to €2.2 billion in the 2027 budget. The increase, described by the Transport Ministry as a record level, aims to meet growing demand on the rail network and will be funded largely from debt‑financed special infrastructure funds, with a focus on renewing existing lines.

The private freight rail association welcomed the higher overall investment but criticised a planned cut to track‑price subsidies, which would fall from €345 million this year to €200 million by 2027. The association warned that the reduction could raise freight‑train costs and push more cargo onto trucks.