Brazil's Supreme Federal Court (STF) ordered seven state courts to return funds paid through unlawful, exorbitant benefit schemes on Wednesday [1].

This order marks a significant escalation in the federal government's effort to curb judicial spending. By demanding the return of these funds, the STF is challenging the autonomy of state courts to distribute additional payments—known locally as "penduricalhos"—that bypass established salary caps.

Minister Alexandre de Moraes and other STF ministers targeted the State Courts of Justice in Goiás, Maranhão, Paraná, Rio de Janeiro, Rio Grande do Norte, Rondônia, and the Distrito Federal [1, 2]. The high court found that these institutions continued to make payments that exceeded the ceiling set by the STF [2].

"The courts maintained exorbitant payments," Moraes said [1].

The STF has ordered the presidents of these seven courts [1] to explain why they ignored the payment ceiling. This is the first time the STF has ordered state courts to return values in this manner [1].

A spokesperson for the STF said the presidents of the state courts must provide clarifications regarding the failure to comply with the payment ceiling [2].

The dispute centers on the legality of these additional payments, which the ministers described as unlawful. The courts are now required to suspend these payments, and return the amounts already disbursed to the public treasury [1, 2].

"The courts maintained exorbitant payments,"

This ruling represents a rare direct financial reclamation by the Brazilian Supreme Federal Court against state-level judiciaries. By targeting 'penduricalhos'—extra-salary perks that often push judicial compensation far beyond the constitutional ceiling—the STF is attempting to standardize public spending and reduce the fiscal burden on state budgets across diverse regions of Brazil.