Overview

• Senators passed a complementary bill to exclude measures worth up to R$30 billion to cushion 50% U.S. tariffs from the fiscal framework and the primary target, leaving two highlights to be voted and sending the package to the Chamber.
• The Senate text enables extra credit support, increases participation in FGO and FGI, and lifts the temporary Reintegra rebate for affected exports to as much as 3%.
• The Chamber approved a separate bill to remove temporary Fundo Social–funded health and education outlays and certain foreign‑loan expenses from the arcabouço and the primary‑result calculation, with amendments under review before the text goes to the Senate.
• The TCU warned that treating the lower bound of the fiscal‑target band as the benchmark for contingencies conflicts with the Fiscal Responsibility Law; Haddad said the government will appeal and noted a R$73.5 billion nominal deficit for 2025, reported as R$30.2 billion within the tolerance band.
• Critics in Congress and technical staff said the carve‑outs amount to fiscal make‑up that weakens the framework, while in Fortaleza unions mobilized after the mayor proposed automatic hiring and pay restraints if spending reaches 95% of revenue.