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Chile megareforma passes amid political tension

Updated 4 times since CLSTR started tracking revisions of this situation.

What changed

2026-07-29 18:28 UTC → 2026-07-30 01:41 UTC · added removed

By late July 2026 the Chilean government moved past the earlier Senate impasse on the Megareforma. After the lower house reaffirmed the reform on 23 July, the Senate finally approved it on 29 July with a narrow 30‑vote majority, just above Congress cleared the required threshold. The legislation, backed by Finance Minister Jorge Quiroz, keeps Megareforma, keeping the corporate‑income‑tax cut to 23 % by 2029 and the 20‑year tax‑stability regime, while adding measures on reconstruction, permit simplification, tax competitiveness and spending restraint. The replacement Senate approved the bill on 29 July with a narrow 30‑vote majority, following the lower‑house reaffirmation on 23 July. In parallel, the government introduced a senior‑property‑tax exemption that eliminates municipal tax on primary residences for older adults, creating an estimated loss of about US $200 million in local revenue. A mixed‑commission formula compensates municipalities with 110 billion Chilean pesos to the Municipal Common Fund, however, remains unsettled Municipal Fund and an extra 80 billion pesos directly to local councils. Mayors are split: right‑leaning officials back the proposal, while opposition leaders argue the funds should be redistributed through the fund to aid poorer communes. An OPES study warned that the current allocation would concentrate money in affluent Santiago districts, whereas a mayor‑led formula would favour lower‑income areas such as Puente Alto. At the Senate. Political pressure persists. same time, deputies in the lower house revived a political‑reform agenda aimed at curbing congressional fragmentation. The proposal would raise thresholds for party registration and financing and tighten rules for independent candidacies, building on an initiative first advanced under former minister Álvaro Elizalde. Polls released on 26 July show President José Antonio Kast’s approval hovering at around 36‑37 %, close to near the 35 % “psychological floor” that analysts warn say could undermine jeopardise his agenda. Disapproval sits between remains above 54 % %, and 59 %. A pessimism about Chile’s future reaches a record 58 % of Chileans are pessimistic about the nation’s future, and majorities anticipate rising inflation and higher bread prices. Public opinion on the Reconstruction and Development law remains split, while the abortion‑related “Escucha tu corazón” bill is rejected by 54 % of respondents. Opposition parties continue to criticize the reform’s legitimacy and the government’s handling of recent severe storms, keeping the political climate volatile. %.

Versions

  1. 2026-07-30 01:41 UTC Chile megareforma passes amid political tension
  2. 2026-07-29 18:28 UTC Chile megareforma passes amid political tension
  3. 2026-07-27 22:02 UTC Chile megareforma stalls, approval nears floor
  4. 2026-07-27 07:13 UTC Chile megareforma stalls, President's approval falls
  5. 2026-07-26 12:33 UTC Chile megareforma stalls, Senate vote delayed

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