Brazil Senate Approves Extension of FGTS Credit for Philanthropic Hospitals Until 2030

The Bottom Line

• Brazil's Senate approved a bill extending the use of FGTS funds for credit operations benefiting philanthropic hospitals until 2030.
• The measure aims to provide cheaper financing, reducing annual interest rates from approximately 18% to 12% for eligible institutions.
• This policy, which previously facilitated R$3 billion in financing for around 140 hospitals, seeks to enhance financial stability and service capacity for SUS-affiliated entities.

The Brazilian Senate on Wednesday, July 15, 2026, approved Bill No. 2,465/2026, which extends the authorization for philanthropic hospitals and other non-profit private institutions providing services to the Unified Health System (SUS) to utilize resources from the Workers' Severance Indemnity Fund (FGTS) for credit operations until 2030. The proposal, which had already passed the Chamber of Deputies and was reported in the Senate by Senator Nelsinho Trad (PSD-MS), now proceeds to presidential sanction.

Contrary to what the FGTS acronym might suggest, the project does not authorize withdrawals of funds by workers nor does it alter the balances of individual accounts linked to the fund. Instead, its objective is to maintain a financing line that enables hospital institutions to contract credit under more advantageous conditions, thereby reducing financial costs and facilitating debt reorganization. In practice, the measure seeks to offer greater financial breathing room to charitable entities that play a strategic role in the country's hospital care, especially in municipalities where they represent the primary inpatient structure for SUS patients.

Cheaper Credit to Reduce Indebtedness

This policy had previously been in effect between 2019 and 2022. According to data presented by the federal government during the bill's processing, approximately 140 philanthropic hospitals contracted around R$3 billion in financing during that period. The expectation is that the resumption of this credit line will allow institutions to reduce their financial charges. While conventional financing can incur rates close to 18% per annum, operations facilitated by this program can lower that cost to approximately 12% annually. This difference represents significant savings for hospitals facing financial difficulties, high demand for services, and increasing costs to maintain complex services.

The reduction in debt costs is expected to free up resources for critical investments in infrastructure, acquisition of equipment, payment to suppliers, and improvement of patient care capacity for SUS patients. This direct financial relief is crucial for entities often operating on tight margins while serving a vital public function.

Legal Certainty for Charitable Entities

Beyond maintaining the credit line, the project also establishes rules related to the administrative processes for certifying charitable entities. The text aims to provide greater legal certainty during these procedures, without extinguishing existing tax debts or creating new tax benefits for the institutions. This amendment was included to reduce uncertainties faced by hospitals during the certification analysis, which is considered essential for maintaining various legal benefits granted to philanthropic entities. The certification process is a critical administrative hurdle, and streamlining it while ensuring transparency is a key secondary objective of the bill.

Legislative Process and Support

The proposal arrived in the Senate after approval by the Chamber of Deputies, where it was reported by Federal Deputy Antonio Brito (PSD-BA), a prominent representative of the Parliamentary Front in Support of Santas Casas and Philanthropic Hospitals. In the final stage of its legislative journey, the matter was under the rapporteurship of Senator Nelsinho Trad, who issued a favorable opinion for the project's approval. On the eve of the vote, Antonio Brito released a message alongside Senator Trad, emphasizing the importance of the Senate's rapporteurship for the conclusion of the legislative process. "I want to convey to all Santas Casas and philanthropic hospitals in Brazil the importance of this moment with Senator Nelsinho Trad. He is the rapporteur of the matter in the Senate. I want to express my recognition for this work, which is very important for Brazil's philanthropic sector," stated the deputy. During the mobilization for the vote, Nelsinho Trad also called on representatives of hospital entities to monitor the project's consideration by the plenary.

The bipartisan support and swift passage through both legislative houses underscore the perceived urgency and importance of this measure for the Brazilian public health system, particularly for the non-profit sector that complements government services.