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BAföG Modernization Stalls as Coalition Withdraws Support

Fiscal constraints have made the planned benefit increases unlikely, with the ministry shifting to technical upgrades such as an AI chatbot.

Overview

  • Federal Research Minister Dorothee Bär said on Sunday that she no longer expects a rapid BAföG reform because the government parliamentary groups no longer support the package.
  • The planned measures included a rise in the housing allowance from €380 to €440 and a two-step increase of the BAföG basic need to match basic social security by 2027/28 and the following year.
  • Bär cited tight finances and trade-offs with other social spending as the reason the increases are unlikely to pass, noting recent debates over cuts to programs such as Elterngeld and care funding.
  • Despite the policy setback, the ministry will continue non-financial work, notably adding an AI-powered chatbot to the bafoeg-digital portal to give anonymous, preliminary BAföG entitlement checks.
  • The dispute reflects an intra-coalition split, with Union leaders opposing benefit raises without growth and the stalled reform highlighting the gap between the coalition agreement and current parliamentary support.