Chile President Kast faces nationwide mayor protests over municipal fund cuts

President José Antonio Kast’s administration has introduced financial measures that cut the Municipal Common Fund and exempt first‑home property taxes for owners over 65 with high incomes. The reforms will reduce municipal revenues by about $200 million, threatening services such as health care, education, public works, security and waste collection.

Mayors from across Chile have voiced strong opposition. Gustavo Alessandri, president of the Chilean Association of Municipalities, said local leaders reject any budget reductions and call for a stronger Municipal Fund. Opposition mayor Matías Toledo warned that a 1% cut would cost Puente Alto roughly 1.5 billion pesos. At the National Mayors Meeting, Kast was met with boos and chants of rejection. Critics argue the tax exemption benefits only the wealthiest 30 % of homeowners and widens the financing gap between rich and poor communes.