What are the federal government's plans regarding the basic income for Ukrainians?
The federal government is planning a so-called change in legal status. This means that certain refugees from Ukraine will no longer be covered by the basic income support system. As a result, they would no longer receive a basic income or welfare benefits, but would instead receive benefits under the Asylum Seekers Benefits Act.
It is important to note that the proposed law does not apply to all Ukrainians in Germany. The key date is April 1, 2025.
Ukrainian refugees who arrived in Germany before this deadline should, in principle, continue to be eligible for the basic income or social assistance if they meet the requirements. For this group, therefore, the proposed law will not change anything.
The situation is different for Ukrainians who entered the countryon or after April 1, 2025, or who applied for or received a Residence permit Section 24 of the Residence Act or a provisional residence permit for the first time after March 31, 2025. In the future, they will no longer be eligible for the basic income system but will receive benefits under the Asylum Seekers Benefits Act if they are in need of assistance.
Why does the federal government want to change the basic income for Ukrainians?
Since March 2022, refugees from Ukraine have been eligible to receive a basic income in Germany if they are unable to support themselves. This is made possible by a special provision under the EU Mass Influx Directive, which allows Ukrainians to enter Germany or other EU countries without applying for asylum and to receive temporary protection there. In Germany, this provision is enshrined in Section 24 of the Residence Act (AufenthG ).
Legally, Ukrainians are therefore not considered asylum seekers. Instead, they are treated the same as other individuals entitled to protection, such as recognized refugees. This gives them access to the labor market, the healthcare system, the education system, family reunification, and social benefits such as the basic income.
The federal government now intends to partially phase out this special provision. This move stems from an agreement in the coalition agreement between the CDU/CSU and the SPD, which stipulates that newly arrived refugees from Ukraine will in future be subject to the Asylum Seekers Benefits Act.
The federal government justifies the law by pointing out that the number of Ukrainian refugees who have entered Germany since the start of the war has now dropped significantly. For this reason, new regulations are being introduced to determine which agencies are responsible for newly arriving refugees. Until now, it has been the Jobcenter; under the new law, it would be the social welfare office.
What will change with the new law?
For those affected, the main change would be the amount of the monthly benefits. The basic income for single adults is currently 563 euros per month. Under the Asylum Seekers Benefits Act, benefits for single adults will be 455 euros per month in 2026.
As a result, those affected would receive less money for their daily living expenses. However, the costs of housing and heating can also be covered under the Asylum Seekers Benefits Act if the eligibility requirements are met.
There would also be changes to health care. Those receiving the basic income are generally covered by public health insurance. The Jobcenter then covers the premiums. The Asylum Seekers Benefits Act provides for medical care under different rules. It covers basic care, such as treatment for acute illnesses, pain, pregnancy, and childbirth.
However, the bill provides that medical treatments already underway may be continued on a case-by-case basis. This is intended to prevent necessary treatments from being abruptly interrupted simply because a person switches to a different healthcare system.
The proposed law also calls for stricter rules regarding integration into the labor market. In the future, individuals capable of working who receive benefits under the Asylum Seekers Benefits Act will be subject to stricter requirements to actively seek employment. Those who fail to meet this obligation may be required by the authorities to participate in so-called “work opportunities” (“one-euro jobs”).
Will the Basic Income Act take effect in July 2026?
The federal government’s original plan was for the law to be enacted and take effect by July 1, 2026, at the latest. However, that date is not yet certain. Although the Cabinet approved the bill back in November 2025, it has yet to be passed by the Bundestag and the Bundesrat.
The Bundesrat —that is, the association of all sixteen federal states—in particular has serious reservations about the new law. It criticizes the financial implications for the federal states. This is because the shift from the Basic Income to the Asylum Seekers Benefits Act would shift costs that were previously borne by the federal government more heavily onto the federal states and local governments.
Although the federal government has promised to cover the costs, the law does not include any binding provisions to that effect. The states therefore fear they will be left to foot the bill.
In addition, the federal states fear that the new law will lead to more bureaucracy. The authorities would have to verify when a person entered the country, what protection status they have, what benefits have already been approved, and when a transition to the Asylum Seekers Benefits Act would be necessary. In many cases, this can be a time-consuming process.
The federal states have identified a third area of concern regarding the integration of Ukrainian refugees into the labor market. Recipients of the basic income are assisted by job centers and receive support in finding employment, obtaining qualifications, and, in some cases, accessing language and integration programs.
Those covered by the Asylum Seekers Benefits Act are not entitled to such benefits to the same extent. The federal states therefore fear that newly arrived refugees from Ukraine may face greater difficulties integrating into the workforce because they have fewer opportunities to learn German.
Until these outstanding issues between the federal government and the states are resolved, the bill cannot be finalized. Furthermore, there are only a few weeks of sessions left before the parliamentary summer recess, which begins on July 10, 2026.
An agreement before the summer recess is therefore currently considered unlikely. This also raises questions about whether the law can take effect on July 1, 2026, as planned. If the federal and state governments fail to reach an agreement before the summer recess, the law would likely be delayed until September.
Conclusion: Basic income pilot program planned, but July 2026 date still up in the air
The end of the basic income allowance for refugees from Ukraine is a key initiative of the federal government. This primarily affects Ukrainians who arrived in Germany on or after April 1, 2025. In the future, they will receive benefits under the Asylum Seekers Benefits Act. For Ukrainians who arrived before that date, nothing is expected to change.
The new law is actually scheduled to take effect on July 1, 2026. However, it is not certain whether this deadline can be met. The bill has not yet been finalized, and there is still disagreement between the Bundestag and the Bundesrat regarding costs, responsibilities, integration, and bureaucracy.
For those affected, this means that, for now, everything remains as it is. Changes will only take effect once the law has been finally adopted and has entered into force. Ukrainians who entered Germany after April 1, 2025, and are receiving social benefits should nevertheless keep an eye on further developments. This is because, for them, the responsible agency and the benefits they receive could change in the future.
