National environment
DB Group
Draft Federal budget for 2027 and financial plan to 2030
On July 6, 2026, the Federal Government approved the draft of the 2027 Federal budget and the financial plan to 2030. The key funds appropriations for rail for 2027 are as follows:
- € 20.8 billion is earmarked for capital expenditures in the Federal rail infrastructure. Most of these funds are to be provided from the Special Fund for Infrastructure and Climate Neutrality (€ 13.7 billion), as well as from the transport budget (€ 2.9 billion) and the defense budget (€ 4.2 billion). Compared with 2026, total funding will decrease by € 1.1 billion, which is primarily attributable to the allocation for the existing network (€ 15 billion instead of € 16.3 billion). A total of € 2.9 billion is budgeted for the requirement plan in 2027 (€ +0.5 billion compared with 2026), while € 2.2 billion is budgeted for digitalization (€ –0.2 billion compared with 2026). As in 2026, € 0.35 billion is available for small and medium-sized measures.
- Just under € 0.6 billion is to be allocated to support for rail transport in 2027. This represents a decrease of € 0.3 billion compared with 2026. The biggest change is the reduction in train-path price support for long-distance rail passenger transport to € 5 million (€ –195 million compared with 2026). The train-path price support for rail freight transport amounts to € 200 million (€ –65 million compared with 2026). The figure for single wagon transport support is € 274 million (€ –26 million compared with 2026). Support for single wagon transport is to be phased out by 2030. As a result, maintaining a widespread single wagon transport network would no longer be feasible due to high fixed costs. The Federal budget item “Innovations in Rail Freight Transport” has been allocated € 39 million, of which just under € 18 million is earmarked for funding the digital automatic coupling (DAC).
According to the Federal Ministry of Transport (Bundesministerium für Verkehr; BMV), a total of € 63.4 billion is earmarked for capital expenditures in the Federal rail infrastructure from 2028 to 2030, which represents an average of just over € 21 billion per year. The funds appropriations planned for 2027 to 2030 do not yet fully cover the necessary requirements for the rail infrastructure. In the area of support for rail transport, a further reduction in train-path price support and support for single wagon transport is expected in 2028.
Parliamentary deliberations on the 2027 Federal budget will begin in early September 2026, with the German Parliament scheduled to vote on it in late November 2026.
Implementation of the Federal Ministry of Transport’s reform agenda
On September 22, 2025, Federal Minister Patrick Schnieder presented his “Agenda for Satisfied Rail Customers – Key points for the reform of Deutsche Bahn.” One key component is a comprehensive structural reorganization within DB Group. Key aspects of the agenda also include measures to noticeably improve the reliability and punctuality of rail transport, to ensure the long-term economic stability of the rail system, and to enable a consistent focus on the common good to a greater extent. The measures are being implemented in a systematic and targeted manner across three key areas of action: reforms within DB Group, the accompanying measures on the part of the Federal Government and the increased mobilization and involvement of the entire sector.
To ensure that the individual measures are carried out properly, the BMV has initiated a standard process in which representatives of DB Group are also participating. The majority of these measures are already being implemented. As a result, three immediate action programs were launched with the aim of creating noticeable improvements for customers in the short term. They focus on security and cleanliness at stations, the quality of customer communication and comfort on long-distance trains.
Recommendations for action from the reliable rail transport task force
Based on the “Agenda for Satisfied Rail Customers” of the BMV, the reliable rail transport task force was tasked in fall 2025 with developing measures to improve reliability and punctuality in rail transport. On March 20, 2026, the task force submitted its final report to Federal Minister Patrick Schnieder. The expert committee, comprising representatives from the Federal Government, the Federal states, Federal agencies, transport companies, associations and DB InfraGO, developed 22 specific measures to improve the reliability of rail transport in the short term. They cover four areas of action: relieving congestion at highly utilized hubs, improved scheduling, more efficient construction site organization and faster fault remediation and a robust database for operations and passengers. Implementation is now the responsibility of the partners in the industry, including DB InfraGO AG in particular. The BMV plans to conduct an interim review in spring 2027.
Federal Government adopts 2026 Climate Action Program
On March 25, 2026, the Federal Government adopted the 2026 Climate Action Program. It includes cross-sectoral measures and outlines a concrete path toward achieving the medium- and long-term climate goals. For the transport sector, the program calls for electrification, sustainable fuels and a shift in the mode of transport. With regard to a shift in the mode of transport, it addresses funding for European Train Control System (ETCS) retrofitting, the expansion and new construction of the rail network, support for single wagon transport and DAC pioneer trains, the long-term financing of the Germany-Ticket, amendments to the Regionalization Act to strengthen public transport and adjustments to the Municipal Transport Financing Act, among other things. The Federal Government continuously reviews the implementation of the measures under this program as part of its monitoring.
Temporary reduction in energy tax
In light of the sharp rise in gasoline and diesel prices caused by the escalating conflict in the Middle East, the German Parliament and the Upper House of Parliament (Bundesrat) passed a “fuel discount” in April 2026: the energy tax on gasoline and diesel was reduced by 14 cents per liter (net) in May and June 2026. To ensure that the tax rate does not fall below the applicable EU minimum, the energy tax on diesel fuel used in local public transport by rail and bus was reduced by only 9 cents per liter (net) to 33 cents per liter (net).
Reduction of electricity costs in rail transport
To relieve the burden on electricity customers, the transmission system operators receive a Federal grant of € 6.5 billion in 2026. According to the transmission system operators, this grant can reduce their fees by more than 50 %. This reduction in fees will also benefit electric rail transport on a pro rata basis, as the traction current grid draws a significant portion of the electricity required for rail transport from the upstream public power grids via transformer and converter stations.
Legislation to reduce bureaucracy and accelerate projects
As part of the measures to reduce bureaucracy, the Infrastructure Future Act (Infrastruktur-Zukunftsgesetz; InfZuG) was passed by the German Parliament (Bundestag) on June 26, 2026, and the Upper House of Parliament (Bundesrat) on July 10, 2026. This law is intended to further accelerate the planning and approval processes for transport infrastructure projects. Key improvements for rail include the elimination of the spatial impact assessment in many cases, simplified environmental and nature conservation regulations, more measures exempt from planning law, faster approval procedures, shorter consultation periods, an expansion of the cut-off date provision, and the equal treatment of monetary compensation and compensation in kind with respect to the impact mitigation regulation under nature conservation law. As part of the so-called second relief cabinet meeting on July 15, 2026, the Federal Government also passed several resolutions aimed at reducing bureaucracy that will also provide relief for rail transport.
Law to accelerate the awarding of public contracts
The law to accelerate the awarding of public contracts (Public Procurement Acceleration Act; Vergabebeschleunigungsgesetz) came into force on July 1, 2026. Among other things, the legislative amendment includes reduced reporting and documentation requirements as well as digitalized tender and review procedures. For infrastructure projects financed from the special fund and transport infrastructure projects exceptions may be made to the lot principle. The Federal Government is authorized to issue a regulation establishing mandatory requirements for the climate-friendly procurement of services, particularly with regard to the use of low-emissions raw materials such as steel and cement. The scope of the transfer of personnel has been expanded for contracts for rail passenger transport services.
Federal Collective Bargaining Compliance Act comes into force
The Federal Collective Bargaining Compliance Act (Bundestariftreuegesetz) came into force on May 1, 2026. The act aims to strengthen the functioning of collective bargaining autonomy, create fair competitive conditions and protect employees. It requires the Federal Government, public client bodies and sector client bodies over which the Federal Government exercises a controlling influence to award construction and service contracts only to companies that comply with collective bargaining agreements or offer terms and conditions similar to those under such agreements. The Federal Ministry of Labor and Social Affairs will issue regulations for each sector regarding the applicable collective bargaining terms.
Passenger transport
Germany-Ticket
The price of the Germany-Ticket was increased to € 63 as of January 1, 2026. From 2027, the price of the ticket will be determined on the basis of a cost index to be developed, which will take into account factors such as wage and energy costs.
On April 14, 2026, the BMV published its third interim evaluation report on the Germany-Ticket. About 14.5 million people are using the ticket. The survey on the use and acceptance of the Germany-Ticket conducted as part of this initiative indicates potential for up to 5.8 million additional tickets. Since the introduction of the Germany-Ticket, CO₂ emissions from individual car usage have been reduced by about 3 % due to the shift to public transport and digitalization has been boosted. The report reflects the status of the survey as of the end of September 2025.
Federal Government approves measures to improve accessibility
On February 11, 2026, the Federal Cabinet approved the draft law amending the Disability Equality Act (Behindertengleichstellungsgesetz). The draft law implements the provisions of the coalition agreement and the obligations under the UN Convention on the Rights of Persons with Disabilities. Public and private companies are required to take appropriate measures to ensure barrier-free access to goods and services. In the draft law, DB Group was classified as a “Federal public agency.” Compared to private companies, it would have to meet stricter requirements regarding the accessible design of its external and internal websites, apps and electronic applications. The draft law is currently under consideration by the German Parliament.
Infrastructure
Ruling by the European Court of Justice on the train-path price cap in regional rail passenger transport
In its ruling on March 19, 2026, the European Court of Justice (ECJ) declared the train-path price cap in regional rail passenger transport to be unlawful under EU law. On March 25, 2026, the Federal Network Agency (Bundesnetzagentur; BNetzA) therefore initiated the revocation and reissuance of the train-path price approvals for the 2025 and 2026 schedule years. On April 23, 2026, DB InfraGO AG submitted new fee applications that call for higher train-path prices for regional rail passenger transport compared to the originally approved fees, while reducing the burden on long-distance rail passenger transport and rail freight transport.
Federal Network Agency issues decision on the competition clause
On July 17, 2026, the BNetzA made its decision on the market entry conditions for competitors of DB Fernverkehr AG by resolution. It requires DB InfraGo AG, on heavily utilized line sections with designated capacity caps, when preparing the annual network schedule, not to allocate more than 60 to 75 % of the capacity available for long-distance rail passenger transport during a specific period to DB Fernverkehr AG or to a single company in the event of a conflict. The exact percentage is to be determined by DB InfraGO AG. The competition clause is to be applied for the first time in 2027 during the preparation of the network schedule for 2028. The competition clause applies only in clearly defined bottleneck situations.
Strengthening critical infrastructures (KRITIS)
The Critical Infrastructure Umbrella Act (KRITIS-Dachgesetz)came into force on March 16, 2026. This marks the first time there has been a uniform Germany-wide framework for the physical protection of critical supply systems. Under the legislation, DB Group, as an operator of critical infrastructure, is required to develop risk and resilience plans. In addition, it must implement crisis management systems and report major disruptions or incidents to Federal agencies such as the Federal Office for Information Security (Bundesamt für Sicherheit in der Informationstechnik; BSI) or the Federal Office for Civil Protection and Disaster Assistance.
At the end of May 2026, the Federal Ministry of the Interior and Community (Bundesministerium des Innern und für Heimat; BMI) submitted a draft Critical Infrastructure Regulation for consultation among the industry associations. The regulation is intended to identify critical systems under the Critical Infrastructure Umbrella Act in order to strengthen the resilience of critical infrastructure and enhance its supply reliability. The Critical Infrastructure Regulation is intended to supersede the previous BSI Critical Infrastructure Regulation.
Freight transport
Measures to support rail freight transport
Important measures include prorated train-path price support, support for single wagon transport, the Federal Future of Rail Freight Transport program, the Funding Guideline for Railway Sidings and the Combined Transport Funding Guideline. These funding programs will continue in 2026. For example, the Federal budget allocates € 300 million to support for single wagon transport and € 265 million to train-path price support.