Bundestag increases faction funds despite fewer MPs and factions

Funding for the Bundestag’s five remaining factions will climb to €141.6 million in 2026, despite a drop in the number of MPs. The increase comes after the dissolution of the FDP faction and the BSW group, which had previously received their own allocations. Critics argue the move should have led to cuts rather than a rise in subsidies.

The Bundestag’s Budget Committee approved the higher budget in November 2025 as part of the 2026 federal spending plan. The governing coalition of CDU/CSU and SPD backed the decision, justifying it with rising personnel costs for faction secretariats. Supporters in the budget debates pointed to the need for more staff support, even with fewer lawmakers.

An initial 2025 proposal had already excluded the FDP’s funding after their exit from the Bundestag. Yet, instead of reducing overall spending, the budget for the remaining factions grew from €137.8 million in 2025 to €141.6 million for 2026. The Haushaltsausschuss adjustments reflected this increase, framing it as necessary for maintaining operations. Reiner Holznagel, head of the German Taxpayers’ Federation, condemned the decision. He argued that shrinking parliamentary groups should have resulted in lower subsidies, not higher ones. The Bundestag, however, maintained that staffing demands—driven by the parliament’s reduced size—required the extra funds.

The 2026 budget now allocates €141.6 million to the five factions, up from €137.8 million the previous year. The rise was approved despite the loss of two parliamentary groups, with lawmakers citing personnel expenses as the key reason. The decision has drawn criticism from tax advocates, who see it as an unnecessary expansion of public spending.