German Government raises rail infrastructure funding, cuts freight subsidy

The German federal government plans to increase spending on new and expanded railway lines from about €1.8 billion to €2.2 billion for the 2027 budget. The rise reflects a shift toward building new tracks, including a planned high‑speed segment between Frankfurt and Mannheim, which aims to shorten travel times and move night freight traffic onto dedicated lines.

At the same time, the transport ministry intends to reduce the track‑price subsidy for rail freight from €345 million this year to €200 million by 2027. Private freight rail operators warned that the cut could raise costs for shippers and push more freight onto trucks, counteracting environmental goals.