Ferrari have been handed a financial boost in their bid to chase down this year's Formula 1 titles, as the FIA's cost cap increase gives teams an extra $6 million over three seasons. The first $3 million allowance can be spent this year or in 2027, offering Ferrari the flexibility to invest immediately in their aggressive development approach.
Why the cost cap has increased
The budget rise follows agreed tweaks to engine regulations over the next two years, shifting from the current 50:50 split between combustion and electrical power to around 60:40. To achieve the extra power from combustion engines, an increased fuel flow rate will be required, meaning cars will use fuel more rapidly and need larger tanks, as refuelling remains banned.
Some teams plan to carry their current chassis into next season as part of cost cap calculations, but fitting a larger fuel tank would require a complete redesign. The FIA has already given itself the power to reduce Grand Prix distances by up to four laps in 2027, and now the extra cost cap allowance helps teams needing funds to redesign their cars for the new power units and fuel tanks.
How Ferrari could use the extra cash
The $6 million total is split into two $3 million allowances, with the second ring-fenced for 2027 and 2028. Ferrari, who have brought new parts to most race weekends this year, are among the more likely teams to use at least some of their first allowance this season, as Charles Leclerc has called for an aggressive development approach.
Ferrari sit second in the constructors' championship, 72 points behind Mercedes. In the drivers' standings, Lewis Hamilton is their lead driver, 50 points adrift of leader Kimi Antonelli, while Leclerc is fourth, a further 31 points back.
Mercedes' contrasting strategy
Mercedes also have access to the first $3 million, but their more conservative upgrade approach means they are likely to have more spending power for the second half of the campaign compared to Ferrari. While the Silver Arrows may benefit later from saving the allowance, it could give Ferrari a short-term advantage in the title fight.
