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Berlin, June 24, 2025 — The German federal cabinet has approved a draft budget that includes a comprehensive €166 billion transport investment programme, with €106.5 billion allocated to the rail sector over the coming years.
The funding, confirmed on Monday, forms part of Germany’s broader strategy to modernise its transport infrastructure, enhance sustainability, and meet its climate targets. The rail investment—representing over 64% of the total transport allocation—is aimed at upgrading the country’s aging railway network, expanding capacity, and improving efficiency.
The draft budget is expected to support key infrastructure projects, including the electrification of regional lines, modernization of signaling systems, and expansion of high-speed rail corridors. The federal government, in cooperation with Deutsche Bahn, also plans to improve punctuality, reduce bottlenecks, and increase freight rail’s share in overall goods transport.
The remaining €59.5 billion in the transport package will be allocated to road, air, and waterway infrastructure, with an emphasis on multimodal integration and climate-resilient upgrades.
The budget will now proceed to the Bundestag for legislative approval, with full implementation expected to begin in 2026.
Germany’s transport ministry hailed the investment as a “historic commitment” to sustainable mobility and a crucial step toward achieving the country’s emissions reduction goals.
