The German government on Wednesday introduced the Democracy Promotion Act aimed at providing long-term financial support for civil society initiatives fighting violence and racism.
"We cannot and will not watch how populists and extremists polarize our society and attack the basic political order of our state. We must support those who, every day, oppose the inhuman ideology of the perpetrators with all our strength and conviction," Family Minister Lisa Paus said at a news conference in Berlin joined by Interior Minister Nancy Faeser.
The bill, which was approved during a Cabinet meeting earlier in the day, came less than a week after German authorities uncovered plans for an alleged coup by an obscure far-right group.
Pointing to the coup plot, Faeser reiterated that right-wing extremism is "the greatest threat" to German democracy.
She vowed "to resolutely fight right-wing extremism" in a bid "to actively protect democracy."
According to the previous regulation, democracy promotion projects financed by the government were always limited in time which made it harder for non-governmental organizations to plan long-term when it came to implementing their programs.
Chancellor Olaf Scholz's center-left coalition government announced a new "action plan" in March to combat racism and pledged stronger measures to counter the growing threat posed by far-right groups.
The country has witnessed growing racism and xenophobia in recent years fueled by the propaganda of far-right, anti-Semitic, and anti-Muslim groups, including the main opposition party Alternative for Germany (AfD).
Far-right terror in Germany has claimed the lives of at least 218 innocent people since 1989, according to the Amadeu Antonio Foundation.
Human rights groups have long criticized authorities for underestimating the threat and not seriously investigating crimes committed by neo-Nazis.
