The announcement was made by government spokesman Fatemeh Mohajerani on Iranian state television on January 5.
She said that this measure aims to preserve the purchasing power of households, control inflation and ensure food security.
This plan demonstrates a shift from long-standing import subsidies to direct support for people.
According to the proposal, about 10 billion USD per year was previously spent on subsidies for some imported goods, now it will be transferred directly to the people.
Qualified Iranians will receive 1 million Iranian tomans, equivalent to about 7 USD, in the form of credit that can be used to buy goods.
The Iranian Minister of Labor said that this payment will be distributed to about 80 million people, who account for the majority of Iran's population.
The Iranian economy is affected by sanctions and reduced oil revenue, leading to protests.
Iran's currency has also lost more than half of its value to the USD.
In December 2025, the Iranian Statistics Center, a state agency under the Iranian government, said that the average annual inflation rate reached 42.2%.
The money spent on the Iranian people was announced in the context of widespread protests, with the participation of both businessmen, small traders and university students. Markets have been closed and protests are organized in the campuses of universities in this country.
According to Human Rights Watch (HRAI), the intensity of protests in Iran has spread to at least 78 cities and 222 locations.