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Sachsen-Anhalt Seals €2.61 Billion Infrastructure Deal, Earmarking 60% for Municipalities

A November bill sets up a January 1, 2026 start to channel low‑bureaucracy local budgets.

Overview

  • The state government and municipal associations signed a distribution agreement that assigns roughly €1.6 billion to local governments as lump‑sum budgets.
  • Officials say the implementing law will be introduced in November 2025 and take effect on January 1, 2026, enabling formal disbursement and project starts.
  • Reported local allocations include around €13 million for Zerbst, about €68 million for the Harz district, more than €50 million each for Börde, Salzlandkreis, Saalekreis and Burgenlandkreis, and roughly €34 million for Jerichower Land, with local leaders citing needs such as the Harzer Schmalspurbahnen’s €800 million long‑term shortfall.
  • The money comes from the federal Sondervermögen, a special fund exceeding €500 billion overall, with about €100 billion reserved for state‑level infrastructure.
  • Infrastructure Minister Lydia Hüskens warned that total spending on roads and schools may not rise if federal investments are merely shifted from the regular budget into the special fund.