Normally, Ukrainian refugees to Germany are entitled to a European Union (EU) Temporary Protection Order, which allows them to directly receive welfare without having to go through the asylum application process.
However, according to the draft, Ukrainians coming to Germany from April 1, 2025 will no longer receive Citizen Assistance but will instead receive a subsidy under the Asylum Seekers' Assistance Act, at a lower level.
This could lead to each child receiving less than €100 ($100) per month.
There are currently about 1.25 million Ukrainian refugees living in Germany, and about 21,000 have entered the country for the first time between April 1 and June 30, 2025, according to figures from the Berlin government.
However, the draft law needs to be approved by the cabinet and the National Assembly before taking effect at the end of the year.
The support for Ukrainian refugees has long been controversial in German politics, as the country seeks to cut spending on welfare.
Earlier, on August 3, Bavarian Prime Minister Markus Soeder called on the German government to eliminate all Ukrainian refugees, not just newcomers, from higher subsidies.
About 64.1% of Ukrainians who registered with labor agencies in July 2025 were unemployed.