Brazil's National Telecommunications Agency (Anatel), the federal regulator for telecom services, has approved a plan to absorb a R$51.8 million freeze in its 2026 budget after a federal decree blocked discretionary spending across the public administration.
The measure reduces Anatel's discretionary budget from about R$275.4 million to R$223.5 million, a cut of 18.82%, according to reporting by TeleSíntese and Teletime based on the agency's ordinance published on June 26. The agency says it will try to preserve its workforce and activities classified as essential.
Where Cuts Fall
The largest proportional cuts fall on Anatel's regulatory functions. Funding for granting telecom-service authorizations will fall 50.25%, from R$2.54 million to R$1.26 million. The budget line for telecom-service rulemaking will fall 49.71%, from R$20.86 million to R$10.49 million.
Regulatory inspection, one of the agency's core functions, faces a smaller proportional reduction but a larger operational concern. Its budget will fall 17.18%, from R$38.3 million to R$31.7 million. Teletime reported that the cut to inspection totals about R$6.5 million.
The agency also reduced funding for user relations by 18.46% and administration by 13.5%. Teletime reported that the administration line accounts for almost half of the total savings needed to meet the block.
Travel, Training and Works
The ordinance sets out several rules for adapting contracts, investments and new hiring to the tighter fiscal scenario. Anatel will block all funds for training actions that have not yet been contracted and all resources planned for renovating the facade of its Brasília headquarters.
The agency also ordered a 70% reduction in available funds for domestic and international travel, except travel tied to inspection work. Inspection travel will face a 30% cut. Resources for decentralized execution agreements, consultancies and technical cooperation projects not previously marked as priorities will be reduced by 50%.
Anatel will also reject additional budget reinforcement requests submitted by technical units during the second budget-adjustment window. According to the ordinance, the agency reviewed projects and contracts to identify spending that could be delayed or reduced while maintaining operational capacity where possible.
Hiring Under Review
Anatel's president ordered the agency's Administration and Finance Superintendency to conduct a full review of the Annual Hiring Plan. Procurement processes will be classified as essential, deferrable or unnecessary.
The goal is to decide which contracts can be postponed or canceled and to prioritize mandatory expenses if the federal spending block remains in force during the year. Even so, technical departments were told to keep preparing procurement files, despite the lack of immediate funds, so that projects can move faster if money is later released or restored.
The budget freeze comes from Decree No. 12,990, dated May 29, 2026, which imposed spending restraint to help meet Brazil's fiscal targets. Teletime reported that the Federal Regulatory Agencies Committee warned of risks to the inspection of regulated services, and that the Senate responded by approving PLP 73/2025, a bill intended to shield federal regulatory agencies' expenses.