Brazil proposes budget cuts for Luz para Todos energy program

The Brazilian federal government has proposed a significant reduction in the budget for the ‘Luz para Todos’ program for 2027. The proposed allocation is R$ 1.61 billion, a decrease of approximately R$ 967.1 million from the previously planned R$ 2.57 billion. This reduction is currently under public consultation by the Ministry of Mines and Energy regarding the Energy Development Account (CDE).

The budget cuts may impact states in the Legal Amazon, including Acre, Amazonas, Amapá, Pará, and others. In Acre, the program has benefited 39,100 people since early 2023, ranking the state fifth nationally in terms of people served.

Parallel to these infrastructure efforts, the ‘Luz do Povo’ program has expanded its reach in 2026, benefiting approximately 78.3 million Brazilians. This initiative includes the ‘Tarifa Social de Energia Elétrica’, which provides 100% discounts on the first 80 kWh of monthly consumption for highly vulnerable families, and the ‘Desconto Social’, which offers discounts for families with incomes between half and one minimum wage for up to 120 kWh per month.