German government raises rail infrastructure funding to €2.2 billion in 2027

The German federal cabinet’s 2027 budget proposal increases subsidies for new construction and expansion of railway lines from about €1.8 billion to €2.2 billion. The finance ministry’s draft, obtained by the news agency, shows the transport ministry’s push for more money for rail projects, while most of the larger, debt‑financed infrastructure programme continues to target the renovation of existing tracks.

The private freight‑rail association welcomed the higher overall allocation but criticised a planned cut to the track‑price subsidy (Trassenpreisförderung) for freight traffic, which would fall from €345 million this year to €200 million in 2027. “If the funding is cut now, the government will make rail freight more expensive and encourage a shift back to trucks,” said Neele Wesseln, director of the association.