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NRW supports municipalities: Over 95 million euros for Burbach and Siegen!
Burbach will receive over 2.2 million euros from the Municipal Financing Act 2026 to promote municipal infrastructure in North Rhine-Westphalia.
NRW supports municipalities: Over 95 million euros for Burbach and Siegen!
The state of North Rhine-Westphalia is supporting municipalities with a record amount of 16.84 billion euros in 2026 in accordance with the Municipal Financing Act (GFG). This sum represents an increase of around 1.074 billion euros or 6.8% compared to the previous year. Despite weak economic development, municipalities will be provided with an amount of 390 million euros next year in addition to the original assumptions from the summer. This ensures a solid planning basis for the 2026 budget, as wirsiegen.de reports.
The cities of Burbach, Freudenberg, Neunkirchen and Siegen, which will together receive over 95 million euros, will particularly benefit. Jens Kamieth, CDU member of the state parliament, emphasizes how crucial this financial support is for the municipalities. This is not just a question of politics, but a necessity to ensure municipal infrastructure and services.
Investments in infrastructure
With its plan to improve infrastructure, the state of North Rhine-Westphalia is pursuing the largest investment program in the state's history. Investments totaling 31.2 billion euros are planned over a period of 12 years, of which 21.3 billion euros will be made available directly to the municipalities, which accounts for almost 70% of the total investments. The state government will also invest almost 10 billion euros in its own infrastructure projects and guarantee the amount of the GFG investment allowances for the next 12 years. When tax revenue falls, these lump sums are increased from the state budget to help communities get back on their feet.
The GFG determines how much money is distributed annually to cities and municipalities in order to fulfill their tasks. This is critical for many communities, especially during times of economic uncertainty.
Assignment details
The overview of the allocations for 2026 shows the specific amounts for each city:
| Community | Allocation (Euro) |
|---|---|
| Burbach | 2,299,941.36 |
| Freudenberg | 2,297,330.40 |
| Neunkirchen | 1,887,271.02 |
| University city of Siegen | 89,552,690.65 |
The Municipal Financing Act of North Rhine-Westphalia regulates allocations to municipalities and municipal associations. The legal basis was established on December 19, 2024 and came into force on January 1, 2025. It comprises various parts, including the basis for the allocations and the specific regulations for the tax association. The municipalities bear the costs of their tasks and receive corresponding general and earmarked allocations in order to cope with the financial burden, as [recht.nrw.de](https://recht.nrw.de/lmi/owa/br_bes_text?anw_nr=2&bes_id=54292&aufgehoben=N&keyword=Municipal Financing Act) describes. The GFG thus ensures targeted financial support for municipalities in order to ensure the basis for functioning local government.