Germany's states threaten major cuts to trains and buses without federal aid

Germany's 16 states have warned of major cuts to bus and rail services unless the federal government provides more funding. At a conference in Lindau, Bavaria, transport ministers demanded extra financial support to avoid reducing transport networks across the country.

The states currently manage and fund regional transport but say existing budgets are no longer enough to maintain current service levels. The Conference of Transport Ministers (VMK) met on 25–26 March 2026 to address a growing financial crisis in regional transport. All 16 states jointly called for higher federal grants, arguing that without additional money, train and bus routes would face cancellation. Bavaria, in particular, insisted on no service cuts and full federal compensation for costs linked to a recent EuGH ruling on track pricing.

At present, the states receive around €12 billion a year in regionalisation funds, with a fixed 3% annual increase. However, transport authorities estimate they will need an extra €14 billion by 2031 just to keep services running as they are. They also agreed to cap track price rises at 3% from 2026 to ease financial strain.

Federal Transport Minister Patrick Schnieder did not respond directly to the funding demands. He instead questioned the short timeline for a decision, leaving the states without clear assurances. The federal government has yet to commit to increasing regionalisation grants, despite mounting pressure from the states. The warning from transport ministers puts pressure on Berlin to act quickly. Without a funding boost, passengers could see fewer trains and buses in the coming years. The states have made clear that current budgets cannot cover rising costs, leaving services at risk of reduction.