Published on: October 21, 2025 | Article No: 336 | By: @rprasanth_kumar
The French government’s 2026 draft budget PLF – Projet de loi de finances 2026 introduces two key changes to the country’s personalized housing subsidy benefits (Aides Personnalisées au Logement, or APL) from CAF. These measures aim to control public spending but are also expected to affect many students, particularly those from non-European countries.
Here’s a clear overview of what’s planned, why it’s happening, and who it concerns. Also, a related article APL: How can I apply for Housing Rent Subsidy from CAF?
For all your questions, please feel free to use the comments section below.
APL Frozen in 2026: No Inflation Adjustment
The French government plans to freeze APL amounts for 2026, meaning they will remain at their 2025 level instead of being adjusted to match inflation. This suspension is part of a broader effort to slow the rise in social spending. According to the 2026 draft budget, keeping APL at their current rate will save around €108 million for the state.
Officials explain that this decision follows similar measures taken in other areas of public expenditure and is intended to stabilize costs rather than reduce existing benefits.
However, since housing costs continue to rise in most parts of France, recipients will not see their aid increase even if rents go up. For students and low-income tenants, this could mean a tighter housing budget in 2026.
Student associations have noted that housing remains the largest expense for many young people, and that keeping APL unchanged may have a noticeable impact on their finances.
Revised APL eligibility for non-EU International Students
The draft budget also introduces a change in eligibility for certain international students. From 1st July 2026, non-European Union foreign students who are not receiving a government scholarship would no longer qualify for APL.
The government’s stated goal is to better target financial aid toward those most in need. Currently, many international students qualify automatically for APL because their income is assessed using a standard formula. The reform seeks to focus the support on non-EU students who receive scholarships based on financial need.
According to the explanatory notes in the PLF, the idea is to ensure that public funds are directed toward students with the lowest resources. At present, about 315,000 non-EU international students are enrolled in French institutions, and only 2% to 3% receive government scholarships. The measure would therefore narrow the number of eligible students significantly.
What Happens Next?
If the 2026 French budget is passed as planned, both measures will take effect in July 2026.
✅ APL amounts will remain frozen at 2025 levels (no inflation adjustment).
✅ Non-EU foreign students without scholarships will no longer qualify for the housing subsidy from CAF. So, their monthly expenses could rise by 30-40%.
For the government, it’s a way to rationalize spending. For students, it’s another reason to worry about how they’ll pay next month’s rent.
Support This Blog!
If you’ve found my articles helpful and you want to say thanks, a cup of coffee or two is very much appreciated!. Please help keep it going!
Dear Prashanth,
I hope you are doing well.
I would like to ask about the new CAF regulations coming into effect from July 1st and how they might impact individuals in my situation.
I have completed my Master’s degree in December 2025 and am no longer a student. Currently, I am under APS and actively searching for a job as a non-EU (Indian) candidate.
Could you please let me know if these new CAF rules will affect my case, even though I am no longer a student?
I would appreciate your guidance on this.
Thank you for your time.
Hello Devendra,
The new APL rules applicable from 1st July 2026 are for non-EU international students without a scholarship. With an APS RECE, you are not a student anymore but a job-seeker. You can also check your eligiblity with the local CAF office.
Cheers,
Prasanth
PS: If my articles and answers are helpful, please leave your feedback on Trustpilot