Minister Gilmar Mendes of Brazil’s Supreme Federal Court (STF) ruled on Friday that President Luiz Inácio Lula da Silva’s decree adjusting the Bolsa Família benefit is valid and does not violate electoral law. For Mendes, the measure taken corresponds to the periodic update of values established by the current law disciplining Bolsa Família, a program already recognized by the STF as an instrument for combating poverty.
Background on the Legal Dispute
The AGU filed a writ of injunction (MI 7300) to seek recognition of the decree’s constitutionality. This request follows a 2021 STF decision that found the Executive Power had failed to fix the benefit value established by Law 10.835/2004, which created the Basic Citizenship Income, and ordered the implementation of payments for people in socioeconomic vulnerability. In June 2024, Minister Mendes recognized Bolsa Família as a progressive implementation step of basic income and subjected the program’s values to periodic adjustment, in line with the law establishing the program.
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On September 16, the Public Defender’s Office (DPU) argued in the STF that the law requires values to be adjusted at intervals of no more than 24 months, and that such recomposition had not occurred. The DPU requested the court order the federal government to take action and open a negotiation table for value updates. The following day, Mendes ordered the Union to explain measures taken for inflationary compensation within 15 days. On the same day, the government published the decree raising the benefit by 15.04%, raising the floor value from R$ 600 to R$ 691.
Arguments for the Increase
According to federal government data, the increase in Bolsa Família will cost R$ 5.8 billion in 2026. The fiscal impact of the adjustment on public accounts is projected to reach nearly R$ 23 billion in 2027.
