Nordrhein-Westfalen Rejects Funding for Increased Commuter Allowance
Nordrhein-Westfalen’s Finance Minister, Marcus Optendrenk (CDU), has stated that the state will not be financing the expensive promises made by the new federal government, such as the increase in the commuter allowance. In an interview with the “Westdeutsche Allgemeine Zeitung” (Monday edition), Optendrenk explained that there is no automatic mechanism for the state to contribute to the increased commuter allowance. He added, “Those who propose a tax law change must now bear the financial consequences. In other words, those who order the music must also pay for it.”
Optendrenk pointed out the so-called new “connectivity reservation” in the coalition agreement between Union and SPD at the federal level. “This means: If the federal government decides something that costs the Länder money, it cannot automatically assume that they will also pay for it. This was very important for North Rhine-Westphalia in the coalition negotiations, because the Ampel resolutions have caused billion-dollar holes in our state budget” said Optendrenk.
Union and SPD have announced a permanent increase in the commuter allowance to 38 cents per kilometer from January 1, 2026. If the tax authorities have to pay significantly more money for work-related travel in the future, the income of the state and municipalities would also be significantly reduced. If the federal government does not provide any financial compensation, North Rhine-Westphalia could block the decision in the Federal Council.