Germany's Coalition Clashes Over Student Grants: BAföG Increase in Doubt as SPD Accuses CDU/CSU of Breaking Promises

The Broken Compromise

A key plank of the German coalition agreement is in danger of collapsing after senior figures from the CDU/CSU questioned the affordability of a planned increase to student grants (BAföG). The coalition treaty had promised a "major reform" to modernize the system, starting with an increase in the housing allowance from 380 to 440 euros per month for the coming winter semester 2026/27, and a subsequent step-by-step alignment of the basic needs rate with the social security level.

The fact that the Chancellery is questioning the agreement on BAföG is unsettling young people - and is unnecessary.

The SPD's deputy parliamentary group leader, Wiebke Esdar, reacted sharply after government spokesman Stefan Kornelius stated that the entire coalition agreement, including the BAföG reform, was subject to a financing reservation. Esdar insisted that Finance Minister Lars Klingbeil had already accounted for the costs and that "the financing is in place."

Doubts from the Top

Uncertainty was initially sparked by CDU/CSU parliamentary group leader Jens Spahn, who recently said that state benefits like BAföG could not foreseeably be increased. This was followed by comments from CSU Research Minister Dorothee Bär, who told the Funke Media Group that she had "heard that the reform is no longer supported by the government factions." Bär also stated it was "no drama if students work alongside their studies."

If people in need of care are supposed to save and cuts are being made to parental allowance, then it is understandable that you don't simultaneously promise large additional benefits elsewhere.

Her ministry later rowed back on social media, insisting work was continuing "with emphasis" so the reform could be passed by the cabinet at the end of July and take effect for the winter semester. However, a spokesman left open the possibility of a "slimmed-down" reform without the planned increases.

SPD Outrage and Student Reality

The SPD reacted with fury. Juso chairman Philipp Türmer called Bär's comments "scandalous" and accused her of repeating "honestly stupid clichés" by suggesting students should simply work. He pointed out that 65 percent of students already work, yet nearly 50 percent of those living away from home live in poverty because costs have risen so sharply.

The BAföG must increase. It is currently below the poverty line. You can't explain that to anyone.

Currently, the maximum BAföG rate is 992 euros per month, including a basic rate of 475 euros and a housing allowance of 380 euros for those living away from home. The average payment in 2024 was 635 euros, with only 610,000 recipients—the lowest number since 2000.

A Question of Priorities

The Frankfurter Allgemeine commented that the episode reveals the government's true priorities, suggesting that the welfare of pensioners, motorists, restaurateurs, and farmers is more important to the black-red coalition than education funding. The commentary noted that billions were quickly distributed to these groups while ignoring acute budgetary needs.

What Happens Next

Government spokesman Kornelius said talks within the government on the best possible solution for BAföG are ongoing. A final decision is expected in the coming weeks when the federal budget and financial planning are on the cabinet's agenda. The SPD has warned that blocking the reform would damage trust in the coalition and harm the skilled workers of tomorrow.