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Saxony-Anhalt: 1.6 billion euros for municipalities - a windfall for infrastructure!
On September 17, 2025, an agreement was signed in Saxony-Anhalt that supports municipalities with 60% of the special fund.
Saxony-Anhalt: 1.6 billion euros for municipalities - a windfall for infrastructure!
The municipalities in Saxony-Anhalt can be happy: On September 17, 2025, the State Chancellery in Magdeburg announced an important agreement. This stipulates that the municipalities receive 60 percent of Saxony-Anhalt's share of the special fund, which corresponds to around 1.6 billion euros. This money comes from an extensive federal plan that aims to raise a total of 500 billion euros in debt to enable important investments in the federal states' infrastructure. Loud Deutschlandfunk The Bundestag has already discussed the issue in its first reading.
But what does this actually mean for municipalities? Andreas Dittmann, President of the Association of Cities and Municipalities of Saxony-Anhalt, is positive about the division, as around 70 percent of the special funds are needed on the municipal side. The funds are paid out to the municipalities and districts in the form of a lump sum, so that they can be used quickly. Prime Minister Reiner Haseloff (CDU) also emphasizes that the municipalities clearly benefit from this special fund MDR.
Investments for the future
The special fund was created in March through an amendment to the Basic Law, which allows the federal government to provide up to 100 billion euros for infrastructure and climate neutrality. These funds are intended for a variety of purposes: the renovation and expansion of schools and daycare centers, the modernization of transport routes, the development of heating and energy infrastructure and the maintenance of hospitals and care facilities. The federal government wants all of this to be done quickly, flexibly and in a targeted manner, so that the federal states can decide for themselves how to use the funds Federal Government.
It is particularly commendable that the needs of financially weak municipalities are also taken into account when distributing the funds. A change in the Basic Law also allows the federal states to take on new debt without violating existing debt rules. This is particularly important in order to reduce the investment backlog in transport and civil protection. Finance Minister Michael Richter (CDU) has an obligation to use the funds quickly and as needed.
Overall, it shows that Saxony-Anhalt and its municipalities are taking a decisive step towards a sustainable infrastructure and improving the quality of life of their citizens with this regulation. It remains exciting to see how the money will be used in detail and what specific projects will result from it.