Overview
- Only €100 billion of the federal €500 billion package will reach Länder and municipalities, disbursed over twelve years under state control.
- Distribution follows the Königsteiner Schlüssel, with North Rhine-Westphalia set for about €21.1 billion, Bavaria €15.7 billion, Baden‑Württemberg €13.1 billion, and Bremen €0.9 billion.
- Saxony plans more than €4.8 billion, roughly 60% for municipal projects and about 10% for major projects, while a €480 million school‑renovation pot over twelve years draws sharp criticism as insufficient after state cuts to its own school‑building funds.
- Bavaria announces €12.83 billion for the 2026 municipal financial equalization, plus €3.9 billion from the federal infrastructure fund and an extra €480 million for Bezirke to ease social‑spending pressures, with local budget effects still being calculated.
- Thirteen state‑capital mayors have warned Chancellor Friedrich Merz that municipalities are at their limit, citing depleted reserves, cuts to voluntary services, and surging care costs that have jumped dramatically in recent years.