The Federal Government is investing more than ever in infrastructure, in climate protection and in domestic and internal and external security. Compared to 2024, the Federal Government was able to increase its expenditure on investments last year by more than 12 billion euros – taking the total to around 87 billion. This is an increase of almost 17 percent.   

The funding from the Special Fund will complement the investment from the core budget. For the current year, the Federal Government is planning to increase the investment amount even further, which is only possible with the Special Fund for Infrastructure and Climate Neutrality.  

What has the Federal Government used the special loans for so far?  

Between October and the end of 2025, the Federal Government already invested 24 billion euros from the Special Fund. That includes payments to the Climate and Transformation Fund amounting to 10 billion euros. Other areas of focus included maintenance of the railways (approx. 7.6 billion euros), maintenance of bridges and tunnels on the Federal highways (approx. 2.4 billion euros), investment in hospital infrastructure (1.5 billion euros) and support for the nationwide broadband expansion (approx. 1.4 billion euros).  

The Special Fund retrospectively entered into force at the start of 2025, but the change in government and the resulting prolonged period of provisional budget management up to the start of October 2025 meant that not all the planned funds were used. Any unused loan options can also be considered for subsequent years. 

Where will the Federal Government invest this year? 

For 2026, the Federal Government is planning to further increase its investments to over 120 billion euros, 58 billion of which is allocated to the Special Fund. The projects to be undertaken and the amount to be provided from the Special Fund are determined annually by the German Bundestag in a so-called economic plan – an appendix to the Federal budget.  

This year, too, the focus of investment is on transport and hospital infrastructure as well as digitalisation. On top of this, there will also be new investment in childcare and digital literacy, renovation and construction of climate-neutral heating networks, and other funds for research and development. 

What is the guarantee that the Special Fund will be used effectively?

To ensure transparency in terms of how the special loans will be used, the Federal Ministry of Finance has launched an “Investment Hour” on its website, which will give up-to-date monthly figures for the outflow of funds. The higher levels of investment are also reflected in the official statistics: Quarterly data from the Federal Statistical Office shows that public investment rose sharply in the fourth quarter of 2025.    

The Federal Government is also developing an impact monitoring tool to measure success. This will ensure that the additional investment is actually getting to its citizens and to businesses. The Federal Ministry of Finance has also appointed an Investment and Innovation Advisory Board, which will develop concrete suggestions to accelerate investment in Germany.   

When will the part of the Special Fund designated for Federal States and local authorities be available?

The legal basis for the Federal State share of the Special Fund amounting to 100 billion euros was set out in the middle of December 2025. Loan funds for investments in the Federal States and municipalities will therefore only become available this year.  

All areas of infrastructure stand to benefit – for example, Federal States and local authorities can use the money to renovate schools and childcare facilities, modernise transport links, or maintain hospitals and carehomes in cities and municipalities. 

What will the funds from the Climate and Transformation Fund be used for?

The Climate and Transformation Fund (KTF) is a key instrument in Federal Government efforts to achieve Germany’s energy and climate policy goals. Every year, 10 billion euros flow from the Special Fund into the Climate and Transformation Fund, with the money then ultimately going to programmes promoting, among other things, energy efficiency in buildings, climate-friendly mobility and measures for natural climate protection.   

The Climate and Transformation Fund is also being used to relieve the burden of energy costs on consumers. Expenditure this year is expected to be over 37 billion euros.