Bundestag Approves 4.47 Billion Euros for Digital Ministry in 2026

The Budget Committee of the Bundestag approved the 2026 budget for the Federal Ministry for Digital and State Modernization (BMDS) during its “clearing session” lasting over 15 hours on Friday night. With a total volume of around 4.47 billion euros for the coming year, Karsten Wildberger's (CDU) ministry will have its own complete financial plan for the first time. The department head sees this as a historic step and a sign of the growing importance of digitalization in Germany.

The Digital Ministry's budget speits sich aus zwei Hauptsäulen is funded from two main pillars. The first is the core budget (Individual Plan 24), with around 1.36 billion euros. The second and larger pillar is the portion of the Infrastructure and Climate Neutrality Special Fund allocated to the BMDS, amounting to 3.11 billion euros.

Within the core budget, approximately 956.2 million euros are earmarked for the expansion of the federal government's IT infrastructure. This capital is intended to finance and ensure the central information technology of federal authorities. Digital policy, digital innovations, and connectivity are budgeted at around 222.4 million euros, addressing aspects such as the use of AI, innovative network technologies, and strengthening digital sovereignty.

Fiber optics and Mobile Network Expansion

Within the special fund, the by far largest investment focus is on digital infrastructure. Nearly 2.3 billion euros are allocated for broadband expansion. However, “commitment appropriations” for the coming years will likely need to be deducted again. In 2025, a total of 1.2 billion euros in state subsidies were to be available for fiber optic expansion. In 2024, 3 billion euros were still allocated for Gigabit funding. According to the plan, mobile network expansion will receive an additional 200 million euros in support in 2026.

The second pillar is dedicated to the digitalization of administration with a total of around 657 million euros, with the largest portions going to the EU identity ecosystem or the EUDI Wallet (162.0 million euros), the Citizen Account (256.0 million euros), and the modernization of the register landscape (194 million euros).

Digital Ministry Takes Flight

In parallel with the budget, the BMDS and the Federal Ministry of Finance have reached an agreement on the future of the Federal Information Technology Centre (ITZBund). According to this, the digital department will assume technical responsibility for central tasks of the IT service provider for the federal administration with immediate effect. The actual funds for the ITZBund are to be transferred to the BMDS's individual plan at a later date.

“We are resolutely tackling modernization and digitalization, investing in network expansion, introducing AI in administration, and ensuring that every German receives a digital wallet,” promised Wildberger in light of the approval. He assures: “Our ministry has been operational from day one, and now with our own 2026 budget, we are reaching a milestone on the path to complete independence.” In total, expenditures of 524.54 billion euros are planned for the coming year. This is an increase of 4.07 billion euros compared to the government's draft. For 2025, the planned budget is 502.55 billion euros.

(dmk)