The Brazilian government is evaluating a new phase of its debt renegotiation program to assist low-income families, students, and micro-entrepreneurs [1].

This initiative aims to reduce the financial burden on citizens who currently spend nearly one-third of their income on debt payments [2]. By expanding the scope of debt relief, the administration seeks to stabilize household finances and support the recovery of small businesses.

President Luiz Inácio Lula da Silva announced on April 10, 2026, that the program would be expanded to include students with outstanding FIES loans [3]. "I intend to include indebted Fies students in the debt renegotiation program," Lula said [3].

In addition to students, the government is targeting micro-entrepreneurs (MEIs) to facilitate the recovery of small-scale commerce [4]. Márcio França said on April 30, 2026, that the federal government is studying the implementation of a new phase of the "Desenrola Pequeno Negócio" program [5]. However, some reports suggest the proposal may be distinct from the existing Desenrola framework to provide more favorable conditions [6].

The potential scale of the new program is significant. The total value of debts targeted for renegotiation could reach R$ 140 billion [1]. To ensure the aid reaches those most in need, the government has proposed an income limit for individual beneficiaries of up to five minimum wages [1].

The program is being coordinated through the Ministry of Finance and the Ministry of Entrepreneurship [7]. These agencies are working with banks to establish the terms of the renegotiations, which began discussions as early as March 30, 2026 [2].

“"I intend to include indebted Fies students in the debt renegotiation program,"”

This expansion represents a strategic effort by the Lula administration to stimulate the economy by increasing the disposable income of the lower and middle classes. By targeting FIES students and micro-entrepreneurs, the government is addressing two specific bottlenecks in the economy: the long-term debt burden of educated youth and the fragility of the smallest business entities. The success of the program will depend on the cooperation of private banks and the ability of the government to manage the fiscal impact of such wide-scale debt relief.