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CDU Rift Over Merz’s Rent Cap Plan as SPD Pledges €23.5 Billion for Social Housing

Regional job center chiefs are pushing for legally secure, localized rent calculations instead of federal flat rates

Overview

  • Chancellor Friedrich Merz has proposed uniform maximum housing costs and apartment-size limits for Bürgergeld recipients to rein in welfare spending
  • Peter Schmiedel and other job center leaders argue flat-rate caps overlook regional market differences and could be overturned by courts
  • CDA head Dennis Radtke decried inflated landlord rents as “state-funded abuse” and wants job centers to lawfully reject overcharges under existing rules
  • Data from March show 92 percent of recipients comply with adequate rent limits while about 220,000 households exceed them, including 20,000 singles in apartments of 100 sqm or more
  • Housing Minister Verena Hubertz secured a €23.5 billion social housing investment package through 2029 to ease shortages and curb rent inflation