Overview
- The Chamber of Deputies passed the complementary law by 360 votes to 23, clearing a dedicated R$5 billion per year for Defense outside fiscal targets.
- The measure authorizes exclusions from 2026 to 2031 totaling R$30 billion and allows up to R$3 billion to be excluded in 2025.
- The law bars contingenciamento of these funds and requires at least 40% be directed to investment, with strategic projects meeting a 35% domestic content threshold.
- Resources will come from surpluses of Army, Navy and Air Force funds to support modernization and programs such as Sisfron, the nuclear submarine and the Gripen fighter fleet.
- The proposal was authored by Senator Carlos Portinho, with General Eduardo Pazuello reporting in the Chamber and Randolfe Rodrigues in the Senate, and PT leaders have floated an amendment to reserve 10% for anti-organized crime efforts.