The Special Fund for Infrastructure and Climate Neutrality
The Special Fund for Infrastructure and Climate Neutrality is a €500 billion intergenerational project launched by the German government in 2025. The special fund is an unprecedented initiative for comprehensive investments that will modernise Germany and make it fit for the future.
Goal of the €500 billion investment programme
The German government wants to boost growth and strengthen the German economy in order to safeguard jobs and ensure income and employment opportunities for future generations. The special fund creates the necessary fiscal space that will enable the government to press forward successfully with the structural modernisation of the country. It provides federal, Länder and local governments with a total of €500 billion for additional investments in infrastructure and climate neutrality.
These additional long-term investments will improve macroeconomic conditions, boost private sector investment and strengthen planning certainty for businesses and the public sector.
Investment priorities include transport infrastructure, education, research, digital technology, housing construction, hospital infrastructure, and the transformation to a sustainable, climate-neutral economy.
“We are investing in the strength and future of our country like never before. By making these investments, we are ensuring that children receive a good education. We are making sure the rail system gets repaired and upgraded so that people can get to work on time. We are investing in digitalisation, health, climate action and modern infrastructure in all sectors throughout Germany.”
Finance Minister and Vice-Chancellor Lars Klingbeil
Additional investments and long-term planning certainty for future generations
The Special Fund for Infrastructure and Climate Neutrality was established on the basis of an amendment to the Basic Law (Grundgesetz). The amendment was adopted by the German parliament (Bundestag and Bundesrat) with a cross-party consensus in March 2025. Detailed legal and administrative rules were adopted in October 2025 and December 2025 in close coordination with the Länder. Since then, the funding can be drawn down and used for additional investments.
The intergenerational project is slated to run for 12 years. The special fund has its own borrowing authorisation for investments that are made in addition to the investment spending contained in the core budget. It is being used to finance urgent investments that Germany has put off in recent decades. Each year, loans are taken out only for the amount of special fund resources that are actually spent or disbursed for investments.
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Components of the special fund
Special fund infographics
Content-related sites
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General What is the Special Fund for Infrastructure and Climate Neutrality?
The Special Fund for Infrastructure and Climate Neutrality is an unprecedented investment programme that will modernise Germany and make it fit for the future...
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General Why is the Special Fund for Infrastructure and Climate Neutrality necessary?
Germany needs better schools, childcare facilities, roads and railways. It needs affordable and climate-friendly energy. And it needs high-speed internet connections and additional housing. The special fund provides funding for investments in all of these areas. This will improve people’s lives and make many aspects of day-to-day life easier...
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Monitoring and disbursement of funding How much has been disbursed already and what investment spending is planned?
Federal investment spending in 2025 was up by roughly 17% over the previous year. Overall, federal investment totalled €87 billion in 2025. Of this amount, €24 billion was allocated to the Special Fund for Infrastructure and Climate Neutrality...
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Monitoring and disbursement of funding What is the money being spent on?
The rules for special fund investments are enshrined in law and must be complied with by the federal government and the Länder...
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Monitoring and disbursement of funding What is being done to ensure that the money is spent in a way that focuses on targets and outcomes?
Monitoring the disbursement and use of the money and ensuring transparency are top priorities for the Federal Ministry of Finance. ...
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Framework conditions What is meant by “additionality”?
Legally, investments can be financed by the special fund only once the core budget’s investment ratio has reached at least 10% ...
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Framework conditions Where does the money for the Special Fund for Infrastructure and Climate Neutrality come from?
The loans for investments from the special fund are taken out on an as-needed basis. Each year, loans are taken out only for the amount of special fund resources that are actually spent or disbursed for investments...
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Framework conditions What does “special fund” actually mean?
The use of the term “special fund” (Sondervermögen) has received a lot of criticism. However, it is in fact a technical term derived from budgetary law. Special funds are parts of federal assets that are separate from and managed outside of the federal budget ...
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Framework conditions What is the legal basis for the the special fund?
The legal framework for the special fund was adopted on the basis of a cross-party consensus in close consultation with the Länder ...