Federal Law for Asylum Seekers' Payment Card Initiated

In the pursuit of increased legal certainty and uniformity in dealing with governmental benefits for asylum seekers, the introduction of a payment card at the federal level is now imminent. After internal differences were resolved, the federal cabinet, comprised of the Social Democratic Party (SPD), the Greens, and the Free Democratic Party (FDP), gave the green light for a corresponding federal law. According to a recent statement from the FDP, the new statutory regulation could be decided in the upcoming session week of the Bundestag at the beginning of March. The issuance of a payment card is part of a broader plan to load a portion of the state benefits intended for asylum seekers onto the card as a credit balance. Although the tender process for the payment card is still ongoing, 14 of the 16 federal states have already agreed on a joint approach and aim for implementation by summer. Bavaria and Mecklenburg-Western Pomerania, while pursuing their own approaches, also plan to introduce such a payment option. The exact design of the card remains open at both the state and local levels. Mastercard, represented by the head of Germany Peter Robejsek, emphasized the variability of potential implementations in different federal states and areas. New legislative changes are now intended to expand the uses of the payment card so that each adult household member eligible for benefits can receive their own card. Some areas have already made progress in this process. Thuringia has started using the payment cards in several districts, while preparations for a trial run are underway in Bavaria. Discussions on the functionality of the card include, in addition to the maximum cash amount, the potential restriction of use in certain industries. In Hamburg, the card is already being issued to asylum seekers, with a monthly credit of 185 euros for adults. The introduction of the card is critically accompanied by Diakonie Germany. Here, Social Executive Maria Loheide, in particular, demands a non-discriminatory and sensible use of the card. Shortly before further political talks at the Minister-President Conference level, the recent agreement on the payment card suggests a possible compromise in asylum policy. Hesse's Minister President Boris Rhein sees a uniform and legally secure payment card as an effective tool for migration management.