Building cost subsidies for the establishment of additional childcare places for children under the age of three (U3 places) cannot be reclaimed without further ado if the predicted places cannot be fully occupied due to a drop in demand. This was decided by the Administrative Court of Trier in three similar cases (Ref.: 8 K 4195/25, 8 K 4101/25 and 8 K 4197/25 of 20 November 2025).

A Catholic parish had received an earmarked grant from the state for the conversion and expansion of a daycare centre because the responsible public youth welfare organisations had forecast an increasing demand for childcare places for under-threes. The construction work was completed in full, but not all of the places for under-threes were put into operation because there was no demand. As a result, the state demanded part of the subsidy back. The parish has now successfully defended itself against this.

The purpose of the funding was to create the structural conditions for the U3 places. In order to fulfil this purpose, not all places had to be put into operation, especially as there was not sufficient demand. The court emphasised that the responsibility for incorrect demand forecasts could not be shifted to the funding recipient - especially as they had no influence whatsoever on either the forecast or the actual development of demand. „The rulings are of great practical importance, as many U3 places have been created in recent years via state funding programmes or voluntary municipal building cost subsidies,“ says lawyer Dr Beate Schulte zu Sodingen. „However, these funds cannot simply be reclaimed if the predicted demand suddenly fails to materialise.“