Bill No. 1,659/2024, currently under consideration by the Chamber of Deputies’ Committee on Foreign Affairs and National Defense (CREDN), has received a new substitute text submitted by its rapporteur, Deputy Evair Vieira de Melo (Republicanos-ES), which significantly alters the scope of the original proposal. While the initial bill sought to regulate the receipt of foreign funding by civil society organizations (CSOs), the substitute that was introduced on July 3, 2026, adopts a more restrictive approach by imposing limitations on international funding for these organizations and linking such support to potential risks to national sovereignty. In addition, the substitute includes restrictions on the participation of internationally funded organizations in public policy-making bodies, limitations on certain partnerships with public authorities, and obstacles to advocacy and strategic litigation activities.
The proposal is still awaiting deliberation by the committee. If approved, it will proceed through the subsequent stages of the legislative process in the Chamber of Deputies, including consideration by the other competent committees before a possible vote by the Chamber’s plenary. Should the bill ultimately be approved in the form of the substitute text currently under consideration, it would represent a significant shift in the regulatory framework governing civil society organizations in Brazil..
It constitutes a serious threat to CSOs’ access to resources with international funding an essential source of financial support for organizations working in areas such as human rights, environmental protection, civic participation, institutional strengthening, social assistance, public health, education and public policy oversight. Additionally, the proposed restrictions could also affect organizations that redistribute funding to local initiatives, thereby reducing financial support available to community-based organizations, grassroots movements and local groups that frequently depend on intermediary mechanisms for international cooperation.
Beyond its financial implications, the substitute introduces restrictions that may affect the participation of civil society organizations in public policy councils, advisory committees and other institutional decision-making spaces, as well as certain forms of advocacy and strategic litigation. If implemented, these measures could alter the relationship between the State and civil society by reducing opportunities for the institutional participation of organizations receiving international funding.
From a systemic perspective, the proposal represents a potential shift in Brazil’s regulatory framework for civil society by moving away from a transparency-based approach towards a model centred on restricting organizations according to the origin of their funding. The very introduction and institutional consideration of legislation that frames international funding for civil society organizations as a potential threat to national sovereignty already constitutes an indicator of a narrowing civic space. Even if its legal effects ultimately do not materialize, the proposal reflects a shift in institutional discourse and in the way civil society organizations and international cooperation are framed, with the potential to generate chilling effects on civic participation and the financial sustainability of the sector.
The current stage of the legislative process therefore warrants continued monitoring as a potential risk to Brazil’s enabling environment for civil society.