Thuringia launches €1 billion fund to revive struggling local councils

No budgets? No problem. Thuringia's radical new fund puts cash directly into the hands of towns—fast. Will this be Germany's blueprint for local recovery?

, and Administrator

2026 February 3 . 4:27 PM

1 min read

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Billion-Euro Program for Municipalities Starts - Thuringia launches €1 billion fund to revive struggling local councils

Thuringia has rolled out a €1 billion investment scheme to support its local councils. The programme, launched in Erfurt, aims to speed up funding and cut red tape for towns and villages across the state. Finance Minister Katja Wolf and Matthias Wierlacher, head of Thuringia's Development Bank, unveiled the initiative in the state capital. Unlike similar schemes in other German regions, this one relies entirely on state money rather than federal funds.

The programme removes common barriers by letting councils apply even without an approved budget. By February 3, 2026, 142 communes had already submitted detailed funding requests. A further 40 had expressed early interest in the scheme.

Officials stress the focus is on quick disbursements and economic stimulus. The simplified process means less paperwork and faster access to funds for local projects.

The billion-euro pot is now open to all Thuringian municipalities, regardless of their financial status. Applications are being processed, with dozens of towns already lining up for support. The state expects the funds to kickstart projects and ease financial pressure on local authorities.