Senate Approves Fiscal Package Text and Protects School Internet Fund

Overview

• The Senate approved the text-base of the government’s fiscal adjustment bill by 45–31 on Thursday, Nov. 12, and will vote on four amendments on Tuesday, Nov. 17 before sending the measure to the Chamber of Deputies.
• The approved text cuts tax benefits by a new 10% linear reduction and limits real growth of federal primary spending to 2.0% in years when extra containment is triggered, changes the rules on which budget items can be blocked and lets the Executive use parts of fund balances.
• The government and relator estimate the package could improve the 2027 primary result by roughly R$50–R$60 billion, a figure officials say will help secure a 0.5% primary surplus target for next year.
• Separately, the Senate unanimously passed PLP 230/2025 on Wednesday, Nov. 11, protecting roughly R$465 million in Fust receipts for connectivity projects, requiring council‑approved spending for internet in basic public schools and extending to 2031 a 50% operator contribution reduction for co‑investment.
• Opposition senators have proposed alternative plans and warned of legal and fiscal risks, and ministers say the bills could face presidential line‑item vetoes or court challenges with implications for state transfers, program oversight and the 2027 budget.