STF Bars Lawmakers From Steering Budget Earmarks to NGOs Run by Relatives

Overview

• The ruling blocks the destination and execution of earmarks to third-sector entities managed by spouses or relatives up to the third degree of lawmakers or their aides.
• It also forbids subcontracts and other indirect arrangements with firms tied to those families, closing off intermediary or formalistic workarounds.
• Minister Flávio Dino directed the federal comptroller to submit a 2026 audit schedule within 15 days and sought a joint technical note from the Development, Management and CGU ministries in 60 days concerning DNOCS and Codevasf.
• He requested explanations from the Rio Grande do Sul state audit court after reports it had not enacted rules to ensure transparency and traceability of earmarks.
• The decision cites press reporting and CGU findings of steep growth in transfers to NGOs and persistent transparency and capacity gaps, with a warning that ongoing anomalies could prompt partial or total suspension of payments.