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Chamber of Deputies Approves 1% Social Assistance Budget Floor as PEC Heads to Senate

A four-year phase-in is designed to ease near-term costs by counting current Suas outlays.

Overview

  • The Chamber of Deputies, which approved the amendment Tuesday in a 444–12 vote, sent the text to the Senate for two rounds that require at least 54 votes.
  • The floor rises in stages of 0.3% in the first year, 0.5% in the second, 0.75% in the third, and 1% from the fourth year onward across federal, state, and municipal budgets.
  • At the government’s request, the House version lets existing social-assistance expenses count toward the minimum and ties compliance to the annual budget law to reduce short-term fiscal pressure.
  • States and municipalities must meet their 1% using their own revenue rather than federal transfers, with the same gradual schedule added after lobbying by city groups.
  • Government estimates put the extra cost near R$36.3 billion over four years, while the floor aims to give Suas—Brazil’s network of local social service centers—more stable funding for services that support vulnerable families.