On Wednesday, the federal cabinet passed a draft bill to ensure that the federal government will again contribute €1.5 billion next year towards financing the nationwide travel pass in 2026. The states are also expected to contribute another €1.5 billion.
But a significant funding gap remains unresolved – at both federal and regional levels.
If more financing isn't secured, the funding gap could effectively be passed onto passengers, in the form of an increase in the monthly price.
The pattern mirrors last year’s debate almost exactly. In 2024, long negotiations, which also resulted in a financial shortfall, forced the price of a monthly travel pass to rise from €49 to €58 per month as of January 2025.
According to figures from industry associations, this price rise caused a fall in users, with approximately one million fewer subscribers in early 2025.
READ ALSO: 'Still great value' - Deutschlandticket price hike divides foreigners in Germany
Currently, about 14 million people in Germany use the travel pass, which allows unlimited travel on all regional and local public transport throughout Germany.
But the total costs incurred by transport companies are higher than the combined €3 billion subsidy pledged by federal and state governments. Last year alone, losses reached around €3.5 billion.
How serious is the threat of price increases?
The key point of contention is who will pay for the additional costs beyond the combined €3 billion subsidy. Many federal states are pressing the federal government to bear the extra expenses alone, but the federal government has so far refused.
If no agreement on funding is reached between the federal and state governments, the most likely outcome is that the extra costs will be passed on to travellers in the form of a price increase. But some experts warn that the fate of the Deutschlandticket itself could be at stake.
In response to the ongoing debate, Alexander Möller, Managing Director of the Association of German Transport Companies (VDV) said, “The federal and state governments must ensure that discussions about adequate financing don’t accidentally lead to the end of the Deutschlandticket.”
His concerns were echoed by North Rhine Westphalia's Transport Minister, Oliver Krischner (Greens), who called on the federal government to close the gap and find a more permanent solution: "These agonizing financing debates on the Deutschlandticket must be ended," he said.Â
The current coalition agreement promises price stability until 2026, with gradual and socially acceptable increases planned only from 2029 onward.
READ ALSO: Six day trips you can take from Nuremberg with the 'Deutschlandticket'
With reporting by DPA.
Comments