BRAZIL · ELECTIONS
Key Facts
- What happened On 5 November Brazil’s electoral court opened an investigation into Lula and Vice President Alckmin.
- The complaint The Novo party alleges abuse of political power through 35 benefit measures issued in 2026.
- The request Novo asks the court to cancel their diplomas and bar both from office for eight years.
- The status The court has opened the case; it has not ruled on the merits, and both men can respond.
- The cost Novo adds up about R$40 billion (US$7.3 billion) for measures taken during the campaign period.
- Power Index Brazil ranks 1st of 14 in The Rio Times Latin America Power Index, with 74.2 points (November 2026 edition).
Brazil’s electoral court opened an investigation on Thursday 5 November into President Luiz Inácio Lula da Silva and Vice President Geraldo Alckmin. It acted on a complaint from the Novo party, which alleges abuse of political power in the 2026 election.
The court has not ruled on the merits, and the accusations remain allegations. Novo wants the court to cancel the ticket’s diplomas and bar both men from running for eight years.
What the Electoral Court Decided
Ricardo Villas Bôas Cueva, the electoral court’s inspector-general, ordered that the case go ahead as a judicial electoral investigation. He found the complaint describes the facts, names the government acts it challenges and offers evidence that lets the court define the case.
The order covers Lula for issuing the acts and Alckmin as a beneficiary who took part in events announcing some of them. Both can now present a defence, and the electoral prosecutor will act as legal supervisor.
What Novo Alleges
Novo’s petition counts 35 decrees and provisional measures from 1 January to 16 October 2026 that created or widened benefits. That compares with 17 in 2023, four in 2024 and 14 in 2025, and Novo says 12 of the 35 came during the campaign.
The party cites a pay rise for Bolsa Família, the cash welfare program that reaches about 19.29 million families, and fuel subsidies. It also counts 13 emergency budget credits worth about R$99.7 billion (about US$18.3 billion), at R$5.4621 per US$1.
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-0.82%
166,191.45
-0.82%
71,087.56
+0.38%
10,465.26
-1.52%
2,848,945
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2,484.43
-0.88%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 166,191.45 | -0.82% | +8.41% | 167,563.47 | — | — | — |
| USD/BRL | 5.50 | -0.03% | +2.71% | 5.51 | 5.50 | 5.49 | — |
| SELIC | 13.75% | — | — | — | — | — | |
| PETR4 | 45.95 | -2.48% | +48.95% | 47.12 | 48.04 | 45.95 | 53,129,700 |
| VALE3 | 62.67 | +0.51% | -4.66% | 62.35 | 63.16 | 62.15 | 23,558,700 |
| ITUB4 | 39.97 | +0.65% | +2.59% | 39.71 | 40.17 | 39.33 | 32,695,300 |
| BBDC4 | 13.77 | -2.06% | -26.72% | 14.06 | 14.15 | 13.73 | 74,922,100 |
| BBAS3 | 16.49 | +0.00% | -27.07% | 16.49 | 16.71 | 16.34 | 33,652,800 |
| B3SA3 | 14.36 | +0.42% | +8.79% | 14.30 | 14.44 | 14.04 | 31,827,900 |
| ABEV3 | 15.48 | +1.51% | +17.45% | 15.25 | 15.49 | 15.13 | 55,478,500 |
| WEGE3 | 48.30 | -3.50% | +11.01% | 50.05 | 49.93 | 47.65 | 15,543,300 |
| PRIO3 | 61.54 | -0.97% | +62.76% | 62.14 | 64.44 | 61.54 | 14,097,000 |
| SUZB3 | 52.29 | -0.11% | +6.93% | 52.35 | 52.47 | 51.15 | 9,554,500 |
| RENT3 | 29.07 | -1.32% | -30.07% | 29.46 | 29.71 | 28.91 | 13,661,700 |
| AZZA3 | 14.06 | +0.64% | -51.65% | 13.97 | 14.62 | 13.92 | 3,237,100 |
| CSNA3 | 4.05 | -0.74% | -53.50% | 4.08 | 4.29 | 4.01 | 22,025,500 |
| GGBR4 | 23.99 | -3.58% | +25.67% | 24.88 | 25.14 | 23.75 | 19,901,600 |
| ENEV3 | 26.32 | +0.19% | +39.26% | 26.27 | 26.76 | 26.01 | 12,224,700 |
What Is at Stake Legally
Novo asks the court to find abuse of political power serious enough to cancel the registrations or diplomas of the ticket. It also asks for both men to be declared ineligible for the eight years after the 2026 election.
Those penalties apply only if the court finds that the abuse happened and was grave under the electoral law. Lula and Alckmin are presumed innocent, and the court will weigh the evidence before any ruling.
In Plain English, Who Is Who
The Superior Electoral Court, known as the TSE, is Brazil’s top court for elections, and its inspector-general leads investigations into election abuses. Novo is a political party that filed the case on 20 October, and Alckmin is Lula’s running mate and vice president.
A judicial electoral investigation is a court case that can remove a winner from office or bar a politician from running. Bolsa Família is the government’s monthly cash payment for low-income families.
What It Means for You
For US investors and ADR holders, the case adds a legal risk to the start of Lula’s new term in January 2027. The court has not ruled, and opening a case does not change the runoff result.
The case also tests how far Brazilian courts will police government spending in an election year. Our earlier reports on the Novo complaint and a separate suit by Flávio Bolsonaro cover the background.
What Is Not Known
Lula’s and Alckmin’s answer is not yet public. Their lawyers will give it in the defence they file within the legal deadline, and the case file will show it.
When the court will judge the case is not set, and its press office can say once a date is fixed. Any penalty would need a decision by the full court.
More: Latin America news in English, every day from The Rio Times.
Frequently Asked Questions
What did Brazil’s electoral court decide?
On 5 November it opened an investigation into Lula and Alckmin after a complaint from the Novo party. It has not ruled on whether any abuse took place.
What does the Novo party allege?
Novo alleges that 35 benefit measures issued between January and 16 October 2026 amounted to abuse of political power. These are allegations that the court has yet to test.
What could happen to Lula and Alckmin?
If the court finds grave abuse, it could cancel their diplomas and bar them from elections for eight years. No such finding has been made.
Does this change the election result?
No. The court has only opened the case, and the runoff result stands while it decides.
Sources: Superior Electoral Court, case no. 0603194-42.2026.6.00.0000, Novo party petition, 20 October 2026; Superior Electoral Court, order of Inspector-General Ricardo Villas Bôas Cueva opening the investigation, 5 November 2026; Banco Central do Brasil, PTAX exchange rate, 5 November 2026.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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