Germany Boosts Rail Expansion Funding to €2.2 billion in 2027 Budget

The German federal government plans to increase subsidies for new rail construction and line expansion to €2.2 billion in the 2027 budget, up from €1.8 billion the previous year. The increase was secured by the Federal Ministry of Transport during budget negotiations and is presented in the Finance Ministry’s draft for the 2027 fiscal plan.

While billions from a debt‑financed special infrastructure fund will continue to focus on renewing existing tracks, the private freight rail association welcomed the higher allocation but criticised a proposed cut in track‑price subsidies for freight transport, lowering the support from €345 million to €200 million. The association warned that the reduction could raise costs for rail freight and push more cargo onto trucks.