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German states demand return to old refugee integration funding system

Local councils warn of collapsing integration programs without stable federal support. Will Berlin reinstate the old funding model to ease the financial strain? A coalition of eight states insists the current €7,500 per asylum seeker isn't enough.

The image shows a graph depicting the number of individuals granted asylum in the United States...
The image shows a graph depicting the number of individuals granted asylum in the United States from 1990 to 2016. The graph is accompanied by text that provides further information about the data.

German states demand return to old refugee integration funding system

A majority of Germany's federal states are urging the federal government to reintroduce and permanently establish an integration allowance for states and municipalities, North Rhine-Westphalia's Integration Minister Verena Schäffer (Green Party) told the Neue Osnabrücker Zeitung in its Wednesday edition. "The federal government's current contribution to refugee-related costs is simply insufficient," said Schäffer, who chairs this year's Conference of Integration Ministers.

From 2016 to 2023, the federal government provided states with an annual lump sum, peaking at €2.44 billion in 2019 before sharply declining. Since 2024, states have instead received a per-capita payment of €7,500 for each new asylum applicant.

The states are now calling for a return to the previous system, arguing that the per-capita allowance no longer covers rising costs. By Tuesday, Baden-Württemberg, Berlin, Brandenburg, Bremen, Hamburg, Rhineland-Palatinate, and Thuringia had joined North Rhine-Westphalia's proposal.

Schäffer emphasized that municipalities, in particular, depend on federal support. "We urgently need a commitment from the federal government to continue sharing the long-term costs of integration," she said. "Only then can we ensure a functioning integration infrastructure moving forward."

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