[REVISION HISTORY]

Brazil Executive-Legislative political reconciliation

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2026-09-28 04:01 UTC → 2026-10-01 08:17 UTC · added ~~removed~~

President Luiz Inácio Lula da Silva has reached a legislative agreement with Senate President Davi Alcolumbre and Chamber of Deputies President Hugo Motta to prioritize a concentrated agenda for late August and early September. To maintain stability, Lula has signaled support for the 2027 reelection of both Alcolumbre and Motta. The priority agenda includes the Constitutional Amendment (PEC) regarding the 6x1 work schedule, which proposes reducing the weekly workload from 44 to 40 hours. While Senator Omar Aziz has presented a favorable report, studies suggest the change could increase private school tuition by up to 23% due to rising labor costs. To facilitate key votes, the government has secured strategic commission positions, such as electing Reginaldo Lopes (PT-MG) as president of the commission evaluating the provisional measure (MP 1357/26) to eliminate taxes on international purchases under $50, with Senator Leila Barros (PDT-DF) designated as rapporteur. The Senate is also advancing the Special Tax Regime for Data Center Services (Redata) via PL 278/2026. Following Senate approval, President Lula has sanctioned Law No. 15.506/2026, establishing the National Policy for Critical and Strategic Minerals (PNMCE). This policy aims to transition Brazil from a raw ore exporter to a producer of high-value industrial inputs. To support this, the government has established the Mineral Activity Guarantee Fund (FGAM), with a potential federal contribution of up to R$ 2 billion. Investments in the Geological Survey of Brazil (SGB) for subsoil research are projected to rise from R$ 8 million in 2026 to R$ 300 million in 2027. Lula reinforced this strategy, stating resources should be “extracted here, transformed here, worked here, industrialized here and sold in the interest of our country.” Following the enactment of Law 15.506/2026, Brazil is now moving to define industrialization strategies to attract investment and support the energy transition.

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