What are the federal government's plans?
The federal government plans to significantly reduce spending on housing assistance. Federal Minister of Construction Verena Hubertz (SPD) has submitted a draft bill to that effect. The bill is currently being reviewed by the various ministries. It must then be debated and approved by the Bundestag and the Bundesrat.
According to current plans, spending on housing assistance is set to decrease by about 40 percent: from the current level of about five billion euros to about three billion euros per year in the future.
It is not yet known what specific changes are planned. The draft bill has not yet been published. Therefore, it is not yet possible to say who will actually be affected.
Why does the federal government want to cut housing assistance?
The federal government cites the tight budget situation as the reason for the planned cuts. According to Federal Minister of Construction Hubertz, weak economic growth, various crises, and high government spending are forcing the ministries to implement austerity measures.
However, the plans have drawn criticism. Politicians from the Green Party and the Left Party, as well as social and housing advocacy groups, warn that low-income households could face an additional financial burden. There is also resistance to the cuts within the SPD. Critics fear that this could lead to more people becoming dependent on other social benefits, such as the citizen’s income.
Who is eligible for housing assistance?
Housing assistance is a form of government support for people whose income is sufficient to cover their living expenses but who have difficulty paying their housing costs. In such cases, tenants can receive a rent subsidy.
According to the Federal Statistical Office, approximately 1.24 million households in Germany were receiving housing assistance at the end of 2024. The recipients primarily include retirees, families, single parents, and people with low incomes.
Foreign nationals may also receive housing assistance if they meet the legal requirements and have a valid Residence permit , for example:
- Settlement permit Section 9 of the Residence Act) and permission to
- Long-Term Residence in the EU (Section 9a of the Residence Act)
- Residence permits for employment ( Sections 18a and 18b of the Residence Act) or for self-employed persons (Section 21 of the Residence Act)
- Residence Permits for Training or Study ( Sections16a and 16b of the Residence Act)
- Residence Permits for Family Reunification (Sections 28, 29, 30, 36 of the Residence Act)
- Recognized refugees, persons entitled to asylum (Section 25, paragraphs 1 and 2, of the Residence Act) and persons entitled to subsidiary protection (Section 25, paragraph 2, alternative 2, of the Residence Act)
- Tolerance permit Section 60a of the Residence Act)
Who might be affected by the cuts?
Since the proposed law has not yet been published, there is no specific information on who might receive less housing assistance—or none at all—in the future.
However, Federal Minister of Construction Hubertz told the Rheinische Post: “Unfortunately, the cuts to housing assistance will affect all current recipients. One-third of the households currently receiving housing assistance will lose their benefits. Some of them are people who, based on their income, have only just qualified for the assistance so far.”
As things stand now, housing assistance that has already been approved will continue to be paid. The federal government does not plan to terminate current approvals prematurely. Since housing assistance is generally approved for twelve months—and in some cases even for 24 months—any potential changes are expected to apply only when a new application is submitted or an extension is requested.
Naturalization Housing Assistance—Is That Possible?
An important requirement for Naturalization is the ability to support oneself. Applicants must generally be able to support themselves and their dependents without relying on basic income or social assistance. This also means that anyone receiving basic income or social assistance cannot be naturalized.
The situation is different, however, when it comes to housing assistance. Receiving housing assistance does not, Naturalization , prevent Naturalization .
Other government benefits do not affect the Naturalization process either. These include, for example, child benefits, the child supplement, BAföG, sick pay, and long-term care benefits.
What does receiving less housing assistance mean for Naturalization?
Whether a reduction or the discontinuation of housing assistance Naturalization the Naturalization process depends on the applicant's financial situation.
If a person can support themselves with their own income (or through non-impacting benefits such as child allowance or the child supplement) Naturalization with less housing assistance or none at all, Naturalization remains a possibility.
Problems can arise if, after housing assistance is discontinued or reduced, the person’s income is no longer sufficient to cover living expenses. If the person affected must therefore apply for a basic income or social assistance —or is entitled to it—this may result in the Naturalization is no longer possible.
Are there any exceptions?
Yes—since 2024, the Naturalization Act has included an important exception to the requirement of having a secure means of support. Section 10(1)(3) of the Naturalization Act (StAG) states: The applicant is not required to have a fully secure means of support if they have a job and have been employed for at least twenty months within the last two years.
This means that even if a person has to receive the basic income in the future due to a reduction in housing assistance, Naturalization may Naturalization be possible —provided the above-mentioned requirements are met (at least 20 months of employment within the last two years).
In addition, special rules apply to members of the earlier generation of guest workers and former contract workers. Even in these cases, receiving a basic income or welfare does not automatically Naturalization .
What should applicants keep in mind right now?
First things first: The planned cuts have not yet been finalized. The bill is still in the early stages of the legislative process, and the specific rules have not yet been determined. It is therefore possible that the plans may still change as the process moves forward.
Until the new law is enacted, the current rules will continue to apply. Eligible individuals may continue to apply for housing assistance. Naturalization , receiving housing assistance does not, in principle, have a negative impact.
However, if the law is passed and housing assistance is reduced or eliminated entirely, this could affect the Naturalization —specifically, if one’s livelihood is no longer considered secure.
