Lula Sanctions 2026 Budget, Containing R$11 Billion in Congressional Amendments

Overview

• The containment trims the emendas total to roughly R$50 billion, down from about R$61 billion approved by Congress.
• Lula already vetoed R$400 million deemed outside legal rules, with the rest of the near R$11 billion to be held via blocking and internal reallocation.
• Budget rapporteur Isnaldo Bulhões rejects the excess claim and argues no statutory limits were breached, setting up a potential veto contest in Congress.
• The election-year budget forces payment of 65% of mandatory amendments by July, while lawmakers cut programs such as Pé-de-Meia and Auxílio Gás that the government seeks to replenish.
• The decision lands as the Federal Police expands Operation Overclean into alleged emenda fraud, intensifying scrutiny of how these funds are directed.