Compensation for loss of fare revenue: public transport stays strong

Especially in rural areas, local public transport is really important to people. This is why the federal government is providing support to the Länder in financing the public transport provided by local authorities. People have been using public transport much less during the pandemic. This means that public transport companies have lost a large share of the revenue they normally derive from passenger fares. To compensate for these revenue losses, the stimulus package provides for a one-off, €2.5 billion increase in federal subsidies for public transport.

Federal aid: strong support for transport companies

For some transport companies, the decline in revenue from passenger fares could spell serious financial difficulties. In response, the federal government has begun drafting a federal framework to allow the Länder to grant subsidies to public transport companies to compensate for these revenue shortfalls. This has already been approved by the European Commission.

Climate action: More support for local authorities

When it comes to climate action, local authorities make an invaluable contribution. However, many local authorities have run into financial difficulties due to the pandemic. To support local authorities in fulfilling their responsibilities under the National Climate Initiative, the federal government is lowering local authorities’ contributions to the relevant support programmes. In 2020 and 2021, the federal government will be making available €50 million annually for this purpose. This benefits local authorities as well as local companies, cultural institutions and universities.

National Climate Initiative

The National Climate Initiative promotes climate action projects throughout Germany. The goal is to make a substantial contribution to reaching Germany’s climate targets. Germany is aiming to be mostly carbon neutral by 2050.


Support for sports: more funds for modern sports facilities

Sports take on special importance in times of crisis. All the more reason to make sure that sports facilities don’t suffer from the revenue shortfalls that local governments have experienced as a result of the pandemic. In 2020 and 2021, an extra €150 million will be made available to finance sports facilities.

For information on further stimulus measures in this area, please go to the “Investing in the future” section.