Iran announced a program to provide most citizens with a monthly credit of one million tomans (about $7), funded by redirecting roughly $10 billion previously used for import subsidies. Officials say the measure seeks to protect purchasing power and ensure food security for about 80 million people. The move comes as Iran faces high inflation, a collapsing currency and widespread protests that human rights groups report have left dozens dead and hundreds detained.
Iran Redirects $10 Billion In Subsidies Into Monthly Credits (~$7) As Protests Intensify
Protesters march in downtown Tehran, Iran, Monday, Dec. 29, 2025.
Iran’s government has announced a new relief program that will provide most citizens with a monthly credit equal to roughly $7, officials said, as nationwide protests continue amid a deepening economic crisis.
What Officials Announced
Government spokesperson Fatemeh Mohajerani disclosed the plan on state television, saying it aims to "preserve households' purchasing power, control inflation and ensure food security," according to The New York Times. Under the proposal, about $10 billion that had previously subsidized certain imports would be redirected directly to the public.
Eligible Iranians are to receive one million Iranian tomans (approximately $7) in the form of credit that can be used to purchase goods. The labor minister said the payments are expected to reach about 80 million people, representing a large majority of Iran’s population.
Economic Context
Analysts and officials say the move comes as Iran’s economy struggles with international sanctions, falling oil revenues and a sharply weakened currency. The rial has reportedly lost more than half its value against the U.S. dollar, increasing the cost of imports and household expenses.
Iran's Supreme Leader, Ayatollah Ali Khamenei, pictured sitting next to a senior military official in Iran.
State-linked data cited by domestic authorities indicated the average annual inflation rate reached 42.2% in December, according to the Statistical Center of Iran.
Unrest And Human Rights Concerns
The announcement arrived amid widespread protests involving merchants, traders and university students. Marketplaces have reported closures and rallies have occurred on several campuses.
Human Rights groups monitoring the unrest say demonstrations have spread across the country. The U.S.-based Human Rights Activists in Iran (HRAI) reported protests in at least 78 cities and 222 locations, and alleged that security forces have killed at least 20 people (including three children) and detained roughly 990 people, with more than 40 children reportedly among those arrested.
Observers say the payment scheme is an attempt to ease immediate economic hardship while responding to a broader wave of political and social unrest.
Note: Figures and statements above are based on official announcements and reporting from outlets including The New York Times and monitoring groups such as HRAI. Independent verification of some claims may be limited given the fluid situation.
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