Lula Advocates Abolishing Electoral Fund to Pursue Major Political Reform in Brazil

President Luiz Inácio Lula da Silva, seeking re-election in 2026, has proposed abolishing the Electoral Fund (Fundo Especial de Financiamento de Campanha) as a key step toward comprehensive political reform aimed at combating corruption and polarization in Brazil. In an interview on the program Canal Livre, Lula described the current political system as rife with "generalized promiscuity," criticizing how public funds are allocated to political parties and Congress, which he says perpetuates unhealthy political practices.

Lula emphasized that any serious political reform must address party financing and the fragmented party system, calling for political parties to present clear programs and uphold ethical behavior. He argued that the Electoral Fund and party funds have distorted politics and complicated financial monitoring, going as far as to reflect on his changed stance by stating, "I was a defender of the party fund, I was a defender of the electoral fund, today I am against it. I am against because it has corrupted politics."

The president also condemned the disproportionate allocation of federal budget resources, noting that 50% of the Union's budget goes to Congress, which he considers unsustainable and a barrier to reform. He recognized the difficulty in implementing these changes, highlighting that they directly affect the interests of Congress members and political parties, but stressed the necessity: "I will not be able to do it easily. But if I don't do it, no one will."

Lula’s political reform vision includes revising party rules and financing mechanisms to reduce political polarization and encourage a healthier democratic environment. His proposals reflect an attempt to enact political changes that break the traditional cycle of self-interest and promote greater transparency and ethics in Brazil's political landscape.

This initiative aligns with Lula’s broader agenda during his 2026 re-election campaign to transform Brazil’s political system by targeting the financial structures that underpin party behavior and influence within Congress, aiming to foster a less corrupt and more accountable government.