Financing from the Federal budget

For the existing network, DB Group’s rail infrastructure companies, DB AG and the Federal Government reached an agreement in early 2020 that secures funding through 2029 (LuFV III). Risks arise from a potential failure to achieve the contractual objectives set out in the LuFV and from a possible reclaim by the Federal Government following audits of applications of funds for the intended purposes. Due to the sharp rise in construction costs, funding was significantly increased starting in 2024 through supplementary agreements and trilateral agreements (TriLa) with the Federal Government. In this context, the new funding options created by the 2024 amendment to the Federal Rail Infrastructure Extension Act (Bundesschienenwegeausbaugesetz; BSWAG) are also being utilized, particularly funding for maintenance costs. While a portion of the increased capital expenditures for the existing network in 2024 and 2025 was provided through equity increases, financing from 2026 onward will again be provided exclusively through investment grants. Effective January 1, 2027, the LuFV is to be replaced ahead of schedule by a Performance Agreement InfraGO which is to be negotiated between the Federal Government and DB Group in 2026.

The financial viability of capital expenditures made from DB funds or financial contributions to capital expenditure projects is essential for ensuring DB Group’s ability to invest in the long term.

Risks arise primarily from the fact that infrastructure funding starting in 2027 has not yet been secured to the extent required. Although the funding level provided for in the Federal Government’s current financial plan through 2029 is significantly higher than the amounts allocated in the previous financial plan, it is not sufficient to cover all planned measures. Without any further increase in Government funds, additional priorities must be set for the portfolio in consultation with the Federal Government. Going forward, the Federal Government will use the Infraplan to manage these measures. The Infraplan outlines specific targets for the next five years for the implementation of the target network. By mid-2026, the first Infraplan is to be formally agreed upon with DB InfraGO AG and finalized by the BMV.

In addition to the financing of infrastructure, the financing of specific issues of TOCs is also very important. This applies, for example, to train-path price support for long-distance passenger rail transport and rail freight transport, as well as to support for single wagon transport. Without adequate funding, there are risks regarding the scope of the transport services targeted by transport policy and the viability of transport companies’ business models. To ensure the long-term stabilization of train-path usage fees and their predictable development, a reform of the fee regulation framework – already announced by the Federal Government – will be necessary starting in 2027. Any resulting additional need for Government funds must be included in the Federal budget.