Despite being a pivotal element in Western democracies, the role of the welfare state on satisfaction with democracy (SWD) remains underexplored.  Moreover, existing research relies on cross-sectional data, so there is no actual evidence on whether experiencing welfare benefits influences individuals’ SWD. Theoretically, I develop a new framework centred on the concept of self-deservingness, that is, subjective sources of legitimacy for welfare benefits. Moreover, I build on policy feedback arguments to explore the interactions between these self-perceptions of deservingness and different institutional responses based on programs’ design. I argue that these interactions may generate (mis)matches between policy expectations and policy responses that eventually influence SWD in different ways. Using longitudinal data from the German Socio-Economic Panel (SOEP), the analysis tests these expectations in the German context. Preliminary results show that (1) means-tested programs clearly reduce SWD, (2) earning-related programs do not influence SWD, and (3) the effect of universal programs varies depending on material and ideational factors. Finally, I explore the psychological mechanisms underlying these effects, finding that life satisfaction acts as a mediator through which the personal experiences of welfare benefits are translated into a broader evaluation of democratic performance.