Germany's 2027 budget draft lifts rail expansion funds to €2.2 billion
The draft federal budget for 2027 raises investment in new and expanded rail lines to €2.2 billion, up from €1.8 billion, while cutting subsidies that keep freight on tracks.
Budget draft details
The German government's 2027 budget draft, set for cabinet approval on Monday, allocates €2.2 billion for new rail construction and expansion from the transport ministry's budget, up from around €1.8 billion in 2026. An additional €0.68 billion is earmarked from the defence ministry for rail projects classified as militarily necessary, an increase from €0.55 billion. The transport ministry had pushed for higher allocations, citing the need to improve network reliability amid widespread train delays. A ministry spokesperson said the investments had been raised to a record level to meet growing demands on rail infrastructure.
- 2026: Transport ministry
- 1.8 € billion
- 2027: Transport ministry
- 2.2 € billion
- 2026: Defence ministry
- 0.55 € billion
- 2027: Defence ministry
- 0.68 € billion
- 2026: Track access subsidy
- 0.345 € billion
- 2027: Track access subsidy
- 0.2 € billion
Industry and advocacy reactions
The private rail freight association welcomed the expansion funds but sharply criticised a planned cut in track access charge subsidies for freight. Managing director Neele Wesseln said the subsidy would drop from €345 million in 2026 to €200 million in 2027.
The transport ministry is planning a fundamental reform of track access charges, which function as a rail toll.If the subsidies are cut now, the federal government is making rail freight more expensive and causing further shift from rail to truck.
Strategy questions
Allianz pro Schiene noted that while new-build funds rise, the budget for maintaining the existing network would fall to around €15 billion, and digitalisation funds would also be cut. Managing director Dirk Flege said the draft raised question marks over Transport Minister Patrick Schnieder's rail policy strategy. The Verkehrsclub Deutschland (VCD) argued that despite the coalition having more money than any previous government for infrastructure, it was allocating too little for new and expanded rail.
This coalition has more money than any before it for infrastructure renovation, yet it is providing far too little for new rail construction and expansion.
Next steps
The cabinet is scheduled to vote on the draft budget on Monday. The plan follows years of heavy investment from a debt-financed special infrastructure fund, which has focused primarily on renovating existing lines. The proposed shift toward expansion comes as Germany's rail punctuality remains a persistent public concern.
