Caring for refugees: the federal government is not yet paying any money to municipalities

The federal government has pledged 2.75 billion euros for this year so that the federal states and municipalities can take care of refugees. So far no money has apparently flowed. The Ministry of Finance cites the lack of a legal basis.

The federal government has apparently not yet paid any money to the municipalities for the accommodation and care of refugees. The Federal Ministry of Finance and the German District Association announced this to the editorial network Germany (RND). The reason for the lack of the promised 2.75 billion euros is the lack of a legal basis.

In the first quarter of 2023, the federal states and municipalities therefore made advance payments. The state governments could have this reimbursed by the federal government. The money for the refugees will be provided from a sales tax distribution, the legal basis for this will only be created at federal level in the course of the year, a spokesman for the Federal Ministry of Finance told the RND.

In addition, according to the Federal Ministry of Finance, a legal framework must also be agreed at state level in order to organize the distribution of the money to the municipalities.

Municipalities feel overwhelmed

When it comes to refugees, there is a lot of dispute between the federal, state and local governments. In the opinion of many federal states, the funds promised by the federal government are not sufficient. Some municipalities see themselves at the limit or overburdened, especially when it comes to accommodation and integration measures.

In February there was a summit meeting of representatives from all levels. Better cooperation was agreed and several working groups were created. Federal Interior Minister Nancy Faeser spoke of a “great effort”. Another “refugee summit” is planned for May 10 with the federal states and municipalities.