THE German government confirmed funding arrangements for major rail projects totalling €2.5bn on January 29. At a meeting at the Ministry of Transport in Berlin, transport minister, Patrick Schnieder, and the CEO of infrastructure manager DB InfraGO, Dr Philipp Nagl, together with representatives from Parliament and the federal states, agreed a budget allocation for 2026 that will focus on five key projects:

  • noise protection measures on the eastern section of the Berlin outer ring, €65m
  • construction of the 11km Pfaffensteig Tunnel near Stuttgart, part of the Stuttgart - Singen - Swiss border (Gäu Railway) upgrade project, €1.7bn
  • modernisation and increasing capacity around Zwickau, including the line between Zwickau-Mosel and Lichtentanne, €200m
  • investment in former coal mining regions, including increasing capacity at Cottbus station and Leuna-Works North station, €339m, and
  • electrification of the 19km Gerstungen - Heimboldshausen line to support potash production in the state of Thuringia.

“We are continuing to invest heavily in the modernisation and expansion of the rail network,” Schnieder says.

“Alongside refurbishment of the national network, which has absolute priority, we must not neglect expansion and new construction. Today there is already limited capacity for additional trains on the most heavily used routes.

“It is therefore crucial to set the right course today for the mobility needs of tomorrow,” Schneider says. “Many projects will soon reach the construction-ready stage. It is essential that we then utilise all available financial resources.”

Industry reaction

While the amount allocated to rail for 2026 is as expected and has been broadly welcomed, the Federal Association of Local Rail Transport (BVSN) claims that there is a significant funding gap if all projects already under construction and those in the pipeline are to be completed as planned. Citing official replies to questions raised in parliament, BVSN estimates a funding shortfall of €100m in 2026, with the gap widening cumulatively to €2bn by 2029.

The association points to the programme for small and medium-sized projects which was allocated €349m in the 2026 federal budget, but which is facing a shortfall of €300m by 2030.

“In November, the chancellor reaffirmed that all construction-ready projects would be built,” says BVSN president, Peter Panitz. “The reality is somewhat different. The federal government must now follow up its words with deeds and provide clarity on rail infrastructure funding.”

DB InfraGO 2025 report

The federal funding announcement comes shortly after DB InfraGO published the annual review of its activities in 2025. Last year, the infrastructure manager says s that it:

  • renewed 2065 switches, an increase of 2.6% on the year before
  • renewed 2173km of track, slightly above the levels achieved in 2024 and 2023 
  • renewed 288 km of catenary, a slight decrease of 2% on the previous year
  • constructed approximately 40,000m² of railway bridges, 27% less than in 2024
  • commissioned 60 new signalling centres, up from 40 the previous year, although the planned commissioning of a major centre at Cologne main station did not take place
  • installed 157 route-km of ETCS, extending coverage across the network to a total of 683 route-km, and
  • modernised around 950 of the 5700 stations on the national network.

The most significant project that DB InfraGO started in 2025 was the complete renovation of the 278km Berlin - Hamburg main line, which was closed to all traffic on August 1 and is due to reopen on May 1. DB InfraGO says that within the first five months of the project, 165km of track and 249 turnouts were renewed, and 5km of noise barriers installed. This year signalling and safety systems will be modernised, together with refurbishing the 28 stations on the line.

“For 2026, we have the planning approvals and financial security necessary to continue driving forward vigorously the modernisation of the network,” Nagl says.

“The key challenge remains managing both operations and construction. We anticipate 28,000 work sites and operational performance at least consistent with last year’s levels.”