Lula Vetoes R$11 Billion in Lawmaker Earmarks From Brazil’s 2026 Budget

Overview

• The veto trims the earmark total to roughly R$50 billion, counting so‑called parallel amendments routed through ministries.
• Congress’s 2026 budget guidelines set R$61 billion for earmarks and require 65% of payments in the first half of the year.
• Chief of Staff Rui Costa said about R$11 billion exceeded the legal and politically agreed threshold tied to the fiscal framework.
• The government cites a rule that permits only inflation plus up to 2.5% real growth for these allocations, reflecting STF guidance.
• The timing tests Lula’s rebuilding of ties with congressional leaders Hugo Motta and Davi Alcolumbre in an election year.