Three years after the introduction of Bürgergeld, the German federal cabinet has voted to abolish it and replace it with a new basic security system. The reform introduces stricter rules, including harsher sanctions for missed appointments at job centers. Benefits can be completely withdrawn if recipients are unreachable or miss three appointment invitations. The reform also threatens the loss of housing cost coverage, though affected individuals will have opportunities for personal hearings, and protections are included for those with mental illnesses.

Additionally, the reform removes a fixed exemption period for assets, requiring recipients to first use personal income and assets before receiving benefits. Asset exemption amounts will be based on age. The reform prioritizes job placement and successful further training, coordinated through comprehensive cooperation plans by job centers. Despite expectations from some political factions, the reform is not projected to yield significant savings, with only modest reductions in expenditure in 2026 and slight increases in costs projected in subsequent years. The proposal faces criticism from opposition parties, parts of the SPD, and social organizations who warn against harsh sanctions and risks to vulnerable groups.