Federal government provides 100 billion euros for infrastructure!

Federal government provides 100 billion euros for infrastructure!

Weimar, Deutschland - The federal government has set new course for the financial landscape of the federal states. On July 2, 2025, the cabinet approved a draft law of the Ministry of Finance, which gives the states and municipalities access to an infrastructure special assets of 100 billion euros. These funds are distributed according to the Königstein key, which has been proven for years, which is largely based on two factors: tax revenue and the population of the 16 federal states.

Chancellor Friedrich Merz (CDU) emphasizes the urgency of a quick and targeted use of the funds in order to modernize important infrastructures such as schools, daycare centers, streets and hospitals. The Court of Auditors has already made it clear that these investments are not allowed to start before January 1, 2025, but measures can still be approved by the end of 2036. So there is enough scope to plan and implement necessary projects in the long term.

The Finance Ministers' Conference, under the chairmanship of CDU politician Optendrenk, has drawn up the key points of this financial support. The proposal to use the Königstein key as a distribution method was considered factually good and reliable. In this context, a clear distribution of funds is sought through May 9th. North Rhine-Westphalia benefits the strongest and receives the largest share with around 21 billion euros.

new debt opportunities for the countries

In addition to the infrastructure means, the federal states' debt was decided. In the future, the federal states will be allowed to reelvise up to 0.35 percent of their economic output per year. This represents a significant change, because so far the state has been prohibited from recording new debts by the debt brake. This measure is intended to help the countries to improve their ability to act in the current financial situation.

Federal Minister of Finance Lars Klingbeil (SPD) emphasizes that the federal funds provided should also provide four billion euros for hospitals, through an invoice surcharge of 3.45 percent in all full and semi-inpatient cases in the somatic area. For the institutions concerned, this is a welcome support in challenging times.

• North Rhine-Westphalia: 21 billion euros
• Schleswig-Holstein: 288 million euros annually
• Hamburg: 226 million euros annually until 2037

With an overall concept of over 500 billion euros for infrastructure and climate protection, fresh wind comes into the financial policy of the federal states. An agreement of this kind could lay the foundation for urgently needed investments in society and improve the quality of life in many regions.