Overview

• Lawmakers on the Joint Budget Committee approved an instruction setting the 2026 electoral fund at R$4.9 billion, up from the R$1.014 billion proposed by the government.
• Funding would come from R$2.9 billion reallocated from mandatory state bancada amendments and R$1 billion from cuts to discretionary expenditures.
• Budget rapporteur Isnaldo Bulhões (MDB‑AL) authored the measure and will detail which specific programs face reductions.
• The vote was symbolic and met no resistance from the government’s congressional allies, repeating the record level used in 2024 (roughly R$5.4 billion in today’s prices).
• Outlets diverged on next steps, with some saying the instruction takes immediate effect and others noting it must be folded into the final budget, approved in a joint session, and sanctioned; the move comes as leaders coordinate votes on the IR exemption and the IOF compensation MP.