Senate approves R$15bn for tariff bailout plan

The Senate approved two provisional measures on Wednesday (8): one authorizing a R$15 billion credit line for the Brasil Soberano Plan, and another directing a share of sports betting revenue to the Federal Police Fund for Equipment and Operational Activities (Funapol). Both now head to President Luiz Inácio Lula da Silva’s desk for signature. Government concedes key Senate bills will miss election Workers’ Party steps up pressure on Senate president to end six-day workweek Congress schedules joint session to review over 90 presidential vetoes The R$15 billion credit line is part of the federal government’s broader effort to shore up companies and exporters exposed to last year’s US tariffs on Brazilian goods, as well as fallout from the war in the Middle East. The plan also backs production of strategic goods that weigh on Brazil’s trade balance, including critical minerals and capital equipment. Senator Alan Rick (Republicans of Acre), the rapporteur in the joint congressional committee, broadened the government’s original proposal to reach well beyond manufacturing. Among the key changes, the bill extends financing to agribusiness exporters and companies across their entire production and marketing chains, explicitly makes agro-industrial value chains eligible for investment, and opens the door to cooperatives, associations, and other legally recognized collective groups. Under the plan, the Brazilian Development Bank, BNDES, will act as financial agent for the credit lines and take on the credit risk for loans issued through accredited financial institutions. The National Monetary Council (CMN) will set interest rates, fees, and loan terms, while the Finance Ministry and the Ministry of Development, Industry, Trade and Services (MDIC) will handle eligibility rules and other regulations. The measure also designates the privately run Export Credit Guarantee Fund (FGCE) as the first line of coverage for exporter losses. If that fund runs short, the government-administered Export Guarantee Fund (FGE) would kick in as backup. Sports betting revenue Separately, the Senate approved a provisional measure directing 3% of revenue from sports betting operators to Funapol and to help cover healthcare benefits for Federal Police officers. The money will be redirected from funds previously set aside for healthcare, social assistance, and Social Security, with the 3% share phased in gradually through 2028—starting at 1% in 2026 and rising to 2% in 2027. Funapol will also be allowed to accept voluntary contributions from states, municipalities, and international organizations to support anti-organized-crime efforts, on top of a R$200 million contribution from the federal government in 2026. Individuals and private companies will be able to donate to the fund as well. Coming just months before Brazil’s nationwide elections, the measure is widely seen as an attempt by Lula (Workers’ Party, PT) to bolster his administration’s record on public security—long regarded as one of its biggest political vulnerabilities. Plenary of the Brazilian Senate Carlos Moura/Agência Senado