Dino Freezes Eduardo Cunha Assets in Secret Budget Probe

Brazilian Supreme Court (STF) Justice Flávio Dino has ordered the freezing of up to R$ 6.15 million in assets belonging to former House Speaker Eduardo Cunha. The decision, dated July 6 and made public on July 12, 2026, is part of a widening investigation into the misuse of congressional amendments, commonly referred to as the "secret budget". The move follows a similar high-profile ruling last week in which Dino froze R$ 119 million from Liberal Party (PL) leader Valdemar Costa Neto.

According to the Federal Police (PF), wiretaps and message logs show that Cunha, who has not held public office since 2016, acted as an "informal lawmaker". Investigators allege he negotiated the redirection of federal funds with Mariângela Fialek, known as "Tuca," a former legislative aide. The PF asserts that Cunha used Fialek to bypass formal channels and dictate the allocation of at least 21 health commission amendments to municipalities in Minas Gerais to support his upcoming electoral campaign.

This escalating judicial crackdown on congressional amendments is injecting significant political noise into Brasília, raising concerns for market participants. Analysts warn that the deepening friction between the Supreme Court and Congress over the control of federal budget allocations could disrupt the legislative agenda. With key fiscal and economic reforms currently pending in Congress, heightened political instability threatens to delay crucial policy votes, potentially impacting the Ibovespa (IBOV) and driving volatility in the Brazilian Real (USD/BRL).