Iran rolls out $7 payments to quell affordability protests
Iran’s government announced a new monthly cash transfer of 1 million tomans (about $7) to every citizen as a response to nationwide protests triggered by the rial’s collapse and soaring inflation. The subsidy, unveiled by government spokeswoman Fatma mokhgarani, was initially planned for a portion of the population but was expanded to cover everyone and must be spent on designated goods. Officials say the payments-funded by redirecting roughly $10 billion in import subsidies-aim to protect purchasing power, control inflation, and ensure food security; the first payment is scheduled for Jan. 20. At current prices the amount can buy small quantities of basic foodstuffs,but it falls far short of estimated minimum monthly needs (~$200),so many Iranians viewed it as inadequate. Inflation exceeded 42% in December 2025 and the rial has lost more than half its value over the past year; protests have persisted across much of the country, with demonstrators in numerous provinces and some calling for the return of the shah. Analysts say the stipend may modestly help the poorest quintile but will not materially improve middle-class living standards.
Iran rolls out $7 payments to quell affordability protests
The Iranian government is offering its citizens $7 monthly in a bid to quell nationwide protests and riots over rising prices.
Iran has faced one of its worst protest movements of recent years, this time triggered by the plummeting value of Iran’s rial currency. Hoping to attack the root of the problem, government spokeswoman Fatma Mokhgarani unveiled a new stimulus payment scheme to be sent to all Iranian citizens, totalling 1 million tomans per month — the equivalent of about $7.
Mokhgarani said the measure was meant to ensure “justice in resource distribution,” aimed at “preserving households’ purchasing power, controlling inflation, and ensuring food security.”
The subsidy can only be spent on certain items. She said Iran’s Cabinet originally planned the subsidy to be sent out to 70% of the citizenry, which then expanded to 80%, and then the entire population.
The $7 monthly subsidy will be enough to cover 100 eggs, a kilogram of red meat, or a few kilograms of rice or chicken at current prices in Iran, the New York Times reported. Iranians’ minimum needs cost roughly $200 a month.
The sum will be taken from import subsidies totalling $10 billion.
“The key change is that the subsidy of about [$10 billion] annually that was previously given at the beginning of the supply chain will now be transferred to the end,” Mokhgarani said.
The first payment will be given on Jan. 20.
Iran has found itself rocked by several different crises, including an unparalleled water crisis, crippling sanctions, and, most recently, the collapse of its currency. The rial has lost over half its value against the U.S. dollar over the past year, the New York Times reported, and inflation was over 42% in December 2025.
The Monday announcement failed to quell the protests, which have now been identified in 22 of Iran’s 31 provinces, and in scores of cities, according to the Human Rights Activists in Iran organization.
Many of the protests are unique in calling for the return of the shah.
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While the mere $7 monthly stipend was interpreted as an insult by most, Esfandyar Batmanghelidj, a founder of the Bourse & Bazaar Foundation economic think tank, argued that it could help modestly improve the situation of the poorest Iranians.
“It’s a small amount for the middle class and will not meaningfully improve their standard of living, but it will definitely improve the situation for the poorest quintile,” he told the New York Times.
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