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A Windfall for Local Governments: Federal Special Fund Funds Are Arriving

A Windfall for Local Governments: Federal Special Fund Funds Are Arriving
Local governments receive funds from the federal government's special fund. (File photo) / Photo: Hendrik Schmidt/dpa
From: Sachsen News
Sports facilities, transportation, disaster preparedness—with the help of federal funding, local governments are set to upgrade their infrastructure. The first round of funding is now being disbursed.

According to estimates by the State Directorate, many millions from the federal government’s special infrastructure fund are now reaching local governments. For the first funding period from 2025 to 2028, 580 million is available. Of this amount, approximately 67 percent—or 388.5 million euros—has been approved within two months, the agency reported. This will enable total investments of just under one billion euros.

To date, 464 applications from municipalities, cities, and counties have been approved. They pertain to projects in education, sports, culture, transportation, and fire and disaster protection.

Saxony’s municipalities are set to receive a total of 1.74 billion from the federal government’s special fund for infrastructure and climate neutrality. According to the State Directorate, the money will be disbursed in three tranches by the end of 2036. The federal government established the special fund—a budget separate from the regular budget—in 2025 to facilitate investments.

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