Overview
- In a joint plenary vote, lawmakers approved the final LDO for 2026 and sent it to the president for sanction.
- The law requires payment of at least 65% of individual, bancada and “PIX” amendments by the end of the first semester of 2026, with a political off‑text understanding for 50% of commission health amendments.
- The text allows the Executive to base spending freezes on the lower bound of the fiscal target range and removes the traditional clause that made the central government offset state‑owned companies’ target overruns.
- Up to R$10 billion in rebalancing‑plan expenses by non‑dependent state firms are excluded from the SOE target, a move aimed at enabling Correios’ restructuring and financing.
- The LDO sets an automatic correction for the Party Fund and shields party and electoral funds from freezes, bans creating new policy‑financing funds in 2026, and contains a donation provision during the campaign that opponents argue skirts electoral law.