Germany's cabinet approved a sweeping reform of student financial aid on Wednesday, raising the housing allowance to 440 euros monthly by summer 2027 and lifting the base stipend to 563 euros by summer 2029. Research Minister Dorothee Bär called the move a decisive step toward fulfilling the programme's promise of social mobility. Critics, including the GEW trade union, dismissed the changes as a belated reform with built-in cuts.
Ministers also backed a "Frühstartrente" pension initiative by Finance Minister Lars Klingbeil, under which the state will deposit 10 euros monthly for every child from age six until 18, starting retroactively from January 2026. A ban on supervised alcohol consumption by 14- and 15-year-olds, proposed by Family Minister Karin Prien, also cleared the cabinet.
Separately, the government advanced expanded customs powers allowing AI-driven data analysis and drone deployment to combat financial crime, and a controversial intelligence reform permitting agencies to actively disrupt hostile actors. All legislative packages head to parliament this autumn.