The German government has approved the abolition of the Bürgergeld, a social welfare system introduced in 2023, replacing it with a new, more stringent basic security system called 'Grundsicherung.' The cabinet's decision marks the end of Bürgergeld in its current form after three years, with legislation moving forward to the Bundestag and Bundesrat. The reforms include harsher sanctions for recipients, such as reducing benefits by 30% for three months if they fail to meet obligations like applying for jobs or attending appointments. Complete withdrawal of benefits and rent payments is possible after three missed appointments, but only after a personal hearing, which aims to prevent unjust penalties, especially for those with health issues or mental illnesses. The new rules also tighten the enforcement regarding unreachability and non-cooperation, with measures to ensure recipients cannot avoid sanctions by disappearing. The reforms target only a small fraction of beneficiaries, with fewer than 30,000 sanctions applied monthly, and are designed to incentivize cooperation. The system will also focus on stricter asset and income assessments, with no more grace period for savings; assets are now considered immediately, and the amount of protected assets will vary with age. The overall goal is to improve employment rates and reduce costs, though initial savings are modest, estimated at around 86 million euros in 2026. The changes come amid broader discussions on social welfare costs, economic conditions, and political debates, with the legislation expected to be enacted by July 2026.