Germany is seeking the flexibility to adjust child benefits for European Union migrants, which could mean less money for thousands of foreigners working in the country.
Citizens of other EU countries who work in Germany are entitled to child benefits even if their children live in another EU nation - an issue that has prompted criticism from nationalist parties.
A spokeswoman for the finance ministry said the proposed bill would adjust payments for migrants' children living outside Germany to take account of the cost of living in that country.
Friederike von Tiesenhausen said the bill was "at an early stage" and would require a change in EU law first.
German daily Bild reported the move could save Germany €160 million each year.