Budget Cap Jumps to $215 Million in F1

In 2021, Formula 1 introduced budget caps to create fairer conditions across the grid. For 2025, the spending limit is set at $135 million, but from 2026 it will rise to $215 million, driven by global inflation and the arrival of new technical regulations.

Audi, entering the championship under the Sauber structure, will have a higher cap, as salary levels in Switzerland are 35–45% higher than in the United Kingdom and Italy, where most teams are based.

Some exclusions will remain: driver salaries and those of the three highest-paid team personnel will continue to sit outside the cap.

FIA Director of Financial Regulations, Federico Lodi, emphasized that the change is not an increase in available resources, but rather a revised calculation method to account for inflation and unavoidable costs. He noted that achieving consensus among all eleven teams was essential, which resulted in the list of exemptions being expanded to 20–25 items.