The meeting was aimed at garnering state leaders' support for such moves and addressing local authorities' complaints that public coffers and infrastructure are overburdened.
The leader of the central state of Hesse put the total volume of aid at 3.5 billion euros.
"Our shared goal is to push back irregular migration," said Scholz, after describing the agreement as a "historic moment."
Some 230,000 people requested asylum in Germany in the first nine months of this year, more than in the full year 2022.
His government has also agreed changes to existing rules to enable asylum seekers to enter the labour force more rapidly and to punish human traffickers with longer prison sentences.
Persons:
Olaf Scholz, Hesse Boris Rhein, Lower Saxony Stephan Weil, Angela Merkel, Scholz, Sarah Marsh, Andreas Rinke, Miranda Murray, Rachel More, Barbara Lewis, Raju Gopalakrishnan
Organizations:
Lower, REUTERS, European Union, Thomson
Locations:
Hesse, Lower Saxony, Germany, Berlin, BERLIN, Russia, Scholz's