What is the law about?
According to the German government's plans, Ukrainian refugees who arrived in Germany after April 1, 2025, will no longer receive citizen's income. Instead, they will receive benefits under the Asylum Seekers Benefits Act (AsylbLG).
For refugees from Ukraine who entered the country before this date, nothing will change. The situation is different for people who entered the country after April 1, 2025, and are already receiving citizen's income. A transitional arrangement is planned for them: benefits will continue for the time being, but will end no later than three months after the law comes into force. After that, they would receive benefits under the Asylum Seekers Benefits Act (AsylbLG).
The draft bill is currently being debated in the Bundestag. The first reading took place in mid-January. The relevant committees are currently reviewing the proposal. A final decision is expected in the first half of 2026.
Why the Federal Council rejects the law
The Federal Council has three major points of criticism:
Firstly, there is the question of costs for the federal states. While the citizen's income is financed from federal funds—i.e., money provided by the German state—benefits under the AsylbLG are paid for by the federal states.
Although the federal government promises compensation, there is no binding provision for this in the law. The states fear that they will be left with high costs.
Secondly, they warn against more bureaucracy —especially in so-called mixed households. These are families in which some members continue to receive citizen's income and others fall under the Asylum Seekers Benefits Act (AsylbLG). In this case, two authorities would be responsible for one family. Income and assets would have to be checked twice, which would significantly increase the workload.
Thirdly, the states see a threat to integration. Those who receive citizen's income are supported by job centers and have access to language courses, training, and assistance in finding employment.
This support would largely disappear for newly arrived Ukrainians if they were only to receive benefits under the AsylbLG. In the opinion of the federal states, this would have negative consequences for integration, because many of these services play a crucial role in helping Ukrainians find work.
Citizen's income only for this group?
In addition, the deadline (April 1, 2025) has attracted criticism. The reason: the law will be debated in 2026, but it relates to entry into the country in the past. Although benefits already paid will not be reclaimed, many ongoing cases will have to be re-examined and adjusted.
The federal states warn that this will create a lot of work for the authorities. Files, responsibilities, and IT systems would have to be adapted. This increases the risk of errors and delays.
The Federal Council is therefore calling for clearer regulations. It proposes that only those Ukrainians who have not yet received any benefits should be excluded from receiving citizen's income. Although this would significantly reduce the number of people affected, it would also reduce the administrative burden.
What would change for Ukrainians with the law
For Ukrainians who entered the country after the cut-off date and receive citizen's income, nothing will change for the time being. Only after the law comes into force and the transition period expires will they switch to the Asylum Seekers Benefits Act.
The benefits there are lower. For single adults , the monthly standard rate for citizen's income is currently €563, and around €455 under the Asylum Seekers Benefits Act (AsylbLG). Benefits may vary further depending on the type of accommodation.
On a positive note, ongoing medical treatment is to be continued in individual cases. Nevertheless, associations warn of disadvantages for people who are ill, in need of care, or particularly vulnerable.
What is the Federal Council—and why is it so important for the law?
The Bundesrat is the body in which the federal states are represented. It must approve new laws if they affect the federal states financially or organizationally.
This is the case with the citizen's income law. The bill shifts new tasks and costs to the states. It cannot come into force without the approval of the Bundesrat.
If the Federal Council rejects the bill, there are two possibilities:
- Either the draft law will be amended to incorporate the criticism of the federal states.
- Or it goes to the mediation committee, where the federal government and the states try to find a compromise.
If the Bundestag and Bundesrat fail to reach an agreement, the law could fail in its current form.
What happens now?
The Federal Council adopted its opinion on January 30, 2026, and forwarded it to the Bundestag. The bill is currently being debated there. Changes are still possible at this stage. Possible outcomes include amendments to the bill, a political compromise between the federal government and the states, or a significant delay in the project.
The decisive factor is whether the federal government makes clear commitments to the states regarding financing, removes bureaucratic hurdles, and maintains important integration services. If these questions remain unanswered, there is an increased risk that the law will not be implemented.
The coming weeks will show whether a compromise can be reached—or whether the planned end to citizen's income for Ukrainians will fail due to resistance from the states.
