Budget: Broadband funding to rise again to 2.93 billion euros in 2025

The Ministry of Digital Affairs announced that it would have to cut the state pot for gigabit expansion by one billion in 2024. There will be more in 2025.

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4 min. read

The back and forth regarding broadband funding continues. It was only in July that the Federal Ministry for Digital and Transport (BMDV) informed the federal states that the federal government would have to reduce the state pot for gigabit expansion in 2024 from three to two billion euros due to tight budgets. For 2025, it was also stated that the federal government would contribute around 900 million euros, as well as change approvals and the program of the development bank Kreditanstalt fĂĽr Wiederaufbau (KfW) with one billion euros for "new approvals of broadband expansion projects as part of gigabit funding". However, the draft budget for next year, which the federal government agreed on last week, now provides more money for laying fast internet lines.

According to the draft bill for the 2025 budget that has now been published, expenditure for digital policy projects in the BMDV's individual budget will generally be significantly higher than in the current year. In chapter 1204 on digital infrastructure, which is particularly relevant for network policy projects, around 52% more funding of EUR 3.51 billion will be available for the expansion of digital infrastructure, a data policy that promotes innovation and measures to support smart mobility (2024: EUR 2.31 billion in the budget).

At 2.93 billion euros, support for the nationwide expansion of broadband in 2025 is the main focus of this budget item. This means that significantly more money would be available for gigabit projects than this year. States such as Bavaria were up in arms against the cut announced in July. Many network operators , on the other hand, prefer to expand on their own and want less money from the state.

In terms of investment, there is also an increase in support for mobile network expansion in particular: this is estimated at 366.8 million euros instead of 154.23 million euros in 2024. For example, support is to be provided for closing dead spots. For the implementation of a 5G strategy, however, only 7.95 million euros will be available after 2025 instead of the previous 35.87 million euros. Digital Minister Volker Wissing (FDP) will also have less funding for national and international activities, namely €5.66 million instead of the previous €7.44 million.

Other allocations and grants will also decrease: only 1.2 million euros instead of 71.62 million euros are earmarked for the development and testing of new software-based network technologies in 2025. Subsidies for the promotion of a cross-transport mobility system based on automated, autonomous and connected driving are to fall from around 84.56 million euros to 45.47 million euros. Expenditure of around 91.3 million euros is reported in the area of digital innovations (2024: 113.25 million euros). The cuts here relate to innovative applications of artificial intelligence (AI), for example: While 60.6 million was still on hand in 2024, around eleven million euros less is planned for 2025. Grants for innovative research in the context of digital infrastructure, such as the mFund research initiative or Building Information Modeling, a method for the software-supported networked planning, construction and management of buildings, will also be cut.

(vbr)

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This article was originally published in German. It was translated with technical assistance and editorially reviewed before publication.