The President of the Republic, Luiz Inácio Lula da Silva, fully vetoed Bill (PL) No. 1,791/2019, which provided for the use of employees from public companies in the electricity sector privatized by the National Privatization Program (PND). The decision was published in the Official Gazette of the Union today, Monday (29), in presidential orders released by the federal government.
The veto appears in Order No. 1,910, of December 26, 2025, sent to the National Congress. In the text, the president informs the Federal Senate that he decided to block the proposal “due to unconstitutionality and contrary to the public interest”, under the terms of article 66 of the Constitution.
According to the justification published in the DOU, the decision was taken after consultations with the Ministries of Finance, Planning and Budget, Management and Innovation in Public Services and the Federal Attorney General’s Office (AGU). According to the government, although it recognizes the legislator’s intention, the project would create an increase in personnel expenses without due estimation of the budgetary and financial impact.
“Despite the good intentions of the legislator, the legislative proposal is unconstitutional and goes against the public interest by establishing an increase in personnel expenses without presenting an estimate of the budgetary and financial impact”, says the presidential order.
The text also points out that the project was not in compliance with the 2025 Annual Budget Law or compatibility with the 2024–2027 Multi-Year Plan, in breach of the Fiscal Responsibility Law and the Budget Guidelines Law. Furthermore, the government argues that the measure could affect the primary expenditure limits of the federal Executive Branch and the primary result target.
Another point highlighted by the president is the constitutional incompatibility related to careers. According to the justification, by allowing the use of public employees in other public companies or mixed-capital companies, in positions that are not part of their original career, the project would violate provisions of the Constitution and the consolidated understanding of the Federal Supreme Court.
PL nº 1,791/2019 had been approved by Congress at the beginning of December and dealt with the use of employees of companies in the electrical sector responsible for the production, transmission, distribution and sale of energy. The proposal gained strength in the context of the Eletrobras privatization process, completed in 2022.
According to the approved text, workers from these companies could be reallocated to other state-owned companies or mixed-capital companies, with compatible duties and salaries, if they did not choose to remain within the privatized companies.
With the full veto, the project now returns to the National Congress, which will be able to maintain or overturn the presidential decision in a joint session of deputies and senators.
