The Federal Government is planning a major centralized project called the “Work-and-Stay Agency” to address demographic change and the shortage of skilled labor through targeted immigration. The goal is to significantly simplify the immigration process for skilled workers from third countries and to support German employers in recruiting personnel.
But how far have the plans actually progressed? A recently answered minor interpellation in the Bundestag provides initial details on timelines, budgets, and bureaucratic hurdles. Here is a summary of the key points.
Who Is Steering the Mega Project?
The agency is an interministerial initiative. Following the cabinet decision of November 5, 2025, the Federal Ministry of Labour and Social Affairs (BMAS), the Federal Foreign Office, and the Federal Ministry of the Interior are now coordinating its development. In December 2025, a dedicated steering group was established, which also includes the Federal Ministry for Digital Affairs and State Modernization.
There is not yet a specific launch date for the agency as a whole. Instead, its objectives are to be implemented in phases.
The Major Challenge: The Bureaucratic Jungle
One of the biggest hurdles to optimization is the integration of the existing, highly decentralized structures. Currently, Germany has 549 municipal immigration authorities and 454 different state-level recognition bodies for professional qualifications.
How these entities will be incorporated into the new Work-and-Stay Agency remains under consideration. If immigration authorities continue to play a central role, it must be ensured that they are fully integrated into the new target model in both procedural and IT terms.
Whether there will be nationwide standardized procedures in the future—such as consistent legal interpretations or uniform documentation requirements—depends on the still unresolved distribution of responsibilities. To clarify these issues, a consultation process with the federal states and associations was launched at the end of 2025.
Tackling Long Visa Waiting Times
Another key issue addressed in the inquiry was the long waiting times for visas, which weaken Germany’s competitiveness in attracting skilled workers. According to the Federal Government, accelerating procedures is a “high priority.”
Through measures such as staff optimization, digitalization, and centralization of processing, the Federal Foreign Office has increased the number of processed applications for employment and educational purposes by 20 percent over the past two years.
Budget and IT Focus from Mid-2026
The project has top priority and is backed by substantial financial resources. For the years 2026 to 2029, €775 million have already been allocated to the agency from the Special Fund for Infrastructure and Climate Neutrality.
A large portion of this funding is expected to be invested in digitalization. Procurement procedures for the most important IT components are scheduled for 2026, although the exact number of IT contracts to be tendered has not yet been finalized.
Conclusion
On paper, the “Work-and-Stay Agency” is gradually taking shape. Funding has been secured, the ministries have been aligned, and initial conceptual steps have been initiated.
The real test, however, will be the transition from a highly complex network of hundreds of local authorities to a fast, functional, and digital system. Initial information about the project is currently available on the secured website workandstayagency.com. To identify potential missteps at an early stage, the Federal Government has already committed to evaluating the establishment of the agency as a major legislative initiative.
