Brazil’s federal government has blocked R$300 million from the budget of the National Council for Scientific and Technological Development (CNPq), the main federal agency that funds research scholarships. The amount equals 15% of the council’s 2026 budget and could affect roughly 80% of its 102,000 scholarship holders in the coming months if the money is not restored.
The information is based on reporting by Folha de S.Paulo, also carried by O Tempo through Folhapress. CNPq president Olival Freire Junior confirmed the freeze to Folha and said the impact on the agency was large.
What Was Blocked
CNPq is linked to Brazil’s Ministry of Science, Technology and Innovation. According to the council, it learned of the budget block on June 10 and, as of the Folha report, had no timetable for the funds to be released again.
Freire said about 95% of the blocked amount falls on scholarships. He estimated that the sum represents roughly two months of scholarship payments for researchers. The agency’s total 2026 budget is about R$1.9 billion, after a budget restoration in January.
The risk is concentrated among researchers paid directly from CNPq’s own budget. Only about 20% of scholarship holders receive funding from other sources, such as agreements with outside partners or the National Fund for Scientific and Technological Development (FNDCT), a federal fund that supports science and innovation projects.
Fiscal Explanation
Freire told Folha that President Luiz Inácio Lula da Silva’s government, led by the Workers’ Party (PT), had promised to restore the amount. He said Science Minister Luciana Santos contacted Planning and Budget Minister Bruno Moretti after the block was imposed.
"Our peace of mind comes from the commitment made by Minister Luciana Santos and Minister Bruno Moretti," Freire told Folha.
Folha said it contacted the Science Ministry and the Planning and Budget Ministry by email on Friday. The Science Ministry had not replied by publication time.
In a statement, the Planning and Budget Ministry said Brazil’s total spending block for the year had to rise to R$23.7 billion to comply with the annual spending limit under the country’s new fiscal framework. The ministry said the increase in blocked discretionary spending, meaning spending that can be adjusted by the government, resulted from higher projected mandatory expenses.
The ministry said that, whenever possible, the government observed proportionality between the size of the blocks and the volume of discretionary spending in each affected ministry or agency.
Payment Delays
The budget freeze is separate from a payment failure reported by CNPq this month. The council said an inconsistency in the processing of funds from an external partner delayed payments to some scholarship holders.
According to CNPq, most of those payments were regularized on Thursday, June 18. Scholarship payments are usually made by the fifth business day of each month. The council said 103 scholarships still remained unpaid.
CNPq said most scholarship payments come from its own funds, while 24% come from external partners. The processing problem affected that external-partner segment.
In a statement, the council said it regretted the disruption and was working to normalize the situation as soon as possible. It also rejected what it called dishonest narratives that used a specific payment problem to cast doubt on the institution’s reputation after 75 years of service to Brazilian science.