Germany to Replace Bürgergeld with New Basic Security System

The German Bundestag and Bundesrat approved a reform that will replace the Bürgergeld with a new "Grundsicherung für Arbeitssuchende" starting 1 July 2026. The legislation eliminates the mediation procedure (§ 15a SGB II) that previously allowed an independent conciliator to resolve disputes over cooperation plans, shifting conflict resolution to faster administrative orders and formal appeals.

At the time of the reform, about 5.2 million people were receiving Bürgergeld. Roughly 2.8 million of them are German citizens, while about 2.4 million are non‑citizens, with the largest foreign groups coming from Ukraine, Syria, Afghanistan and Turkey. The new system will introduce stricter sanctions, a mandatory application obligation and tighter asset rules, affecting the majority of current recipients.