Chile Senate advances reconstruction law to fund fire‑damaged regions

The Chilean Senate began voting on the National Reconstruction and Economic and Social Development bill, commonly called the "Omnibus" law. Senators unanimously approved the first article, raising the reconstruction fund from 800 billion to 1.2 trillion pesos and extending coverage to the recent wildfires in the Valparaíso, Ñuble and Biobío regions.

The debate highlighted divergent views on the bill’s economic impact. Proponents argue the law will accelerate rebuilding, strengthen formal employment and spur growth, while critics question the tax cuts and fiscal sustainability. Opposition figures accused the government of using the legislation to favor wealthy interests and described the parliamentary tactics as “bullying” and obstructionist. The bill also proposes a gradual reduction of the corporate income tax rate, tax incentives for large investments, and exemptions for first‑home purchases by seniors.

If passed by the Senate, the proposal will move to the Chamber of Deputies for a third constitutional reading before becoming law.