The federal government has regulated how the funds from the reconstruction fund will be used specifically for the victims of the devastating floods in July.
The cabinet approved the relevant ordinance on Wednesday, which clarifies the details.
"30 billion euros are available to eliminate the destruction caused by the flood disaster and to rebuild buildings and infrastructure," said Federal Finance Minister Olaf Scholz (SPD).
The federal and state governments are sharing 28 billion euros for the aid fund, and the federal government alone is providing two billion for destroyed infrastructure.
First, the funds are distributed according to a fixed key - Rhineland-Palatinate receives 54.53 percent, North Rhine-Westphalia 43.99 percent, Bavaria 1.0 percent and Saxony 0.48 percent.
As soon as the damage can be estimated more clearly, the distribution key should be adjusted.
Affected households and companies can usually receive compensation of up to 80 percent of the damage.
"In addition, there are third-party benefits, for example from insurance or the immediate aid granted up to a maximum of 100 percent of the determined damage," according to the Federal Ministry of Finance.
There should be separate regulations for cases of hardship - up to 100 percent can then be compensated.
The Federal Council still has to approve the ordinance - as well as the law establishing the flood fund. This is scheduled for September 10th.