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The proposal to use the FGTS to pay off debts faces reaction from the construction sector, which sees risk for the Minha Casa Minha Vida, for housing credit, and 92 thousand formal jobs in the country.
The discussion about releasing the FGTS for workers with debts has already raised an alert in the real estate market and in construction. The proposal, which is still under joint analysis between the Ministry of Finance and the Ministry of Labor and Employment, is seen by the sector as a change that could ease the burden on indebted families in the short term, but also disrupt the main mechanism that currently finances popular housing in the country. Not surprisingly, the reaction was immediate.
Businesspeople and housing-related entities began to pressure the government, arguing that any extra withdrawal from the fund could severely impact housing credit, formal employment, and the pace of the Minha Casa Minha Vida.
The government has not made a final decision, but the signal already worries the sector
The idea of using fund resources to settle debts was confirmed by the Minister of Finance, Dario Durigan. According to him, the proposal is being discussed with the Ministry of Labor and Employment and there is still no finalized plan.
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The economic team is considering including the measure in a broader package to reduce family indebtedness and expand access to credit, focusing especially on low-income individuals, informal workers, micro-entrepreneurs, and small businesses.
Among the possibilities under consideration are renegotiation with better conditions and discounts that could reach up to 80% on some debts.
Even without a defined format, the mere signaling has already been enough to provoke a strong reaction in the housing chain.
The reason is straightforward: the FGTS does not function merely as a worker’s reserve. It also supports public housing policies, sanitation, and infrastructure, in addition to fueling large-scale housing financing.
The Minister of Labor, Luiz Marinho, has been advocating for the preservation of the fund and criticizing mechanisms that, in his view, pressure the sustainability of this resource source.
Construction sees risk of draining the FGTS at a time of rising housing costs
The Abrainc was one of the first entities to raise its voice. In a statement, the association stated that the use of about R$ 7 billion from the fund to settle debts threatens access to housing and the country’s growth.
The entity claims that the measure expands the diversion of the fund’s purpose, could compromise the construction of up to 50 thousand homes, affect around 91 thousand jobs, and reduce GDP by R$ 9.1 billion, in addition to pressuring tax revenue.
Luiz França, president of Abrainc, summarized the concern by stating that using the FGTS for immediate consumption pushes families further away from home ownership and could increase the housing deficit, decrease job availability, and slow economic growth.
The Secovi-SP followed the same line. The entity expressed deep concern about the possibility of releasing fund balances for settling overdue debts and stated that the measure diverts the structural function of the FGTS in the real economy.
In the union’s assessment, the fund is a central piece not only for housing but also for sanitation and infrastructure. The argument goes beyond housing credit: according to the entity, for every R$ 1 invested by the FGTS in real estate projects, 22 direct jobs are created, which transforms any additional withdrawal into a decision with a chain effect on construction, formal jobs, and income.
Minha Casa Minha Vida has grown and become even more dependent on this source of money
The construction sector’s reaction comes at a time when the fund has gained even greater weight in housing financing. The Ministry of Cities reported that the total FGTS budget for 2026 reached R$ 160.5 billion, of which R$ 144.5 billion was allocated to housing.
In 2025, the approved budget was R$ 142.3 billion, while in 2024 the amount allocated to the housing sector was R$ 139.6 billion in the total fund, with R$ 105 billion for popular housing in the original budget, in addition to subsequent supplements.
In the comparison used by sector entities for the Minha Casa Minha Vida, the cited numbers were R$ 144.5 billion in 2026, R$ 142.3 billion in 2025, and R$ 102.4 billion in 2024.
This progress helps explain the size of the resistance. The Minha Casa Minha Vida has regained strength and now occupies a decisive share of the market.
In 2025, the program accounted for 62% of launches and 63% of sales in the city of São Paulo, according to data cited by Agência Gov based on Secovi-SP.
Since 2023, the program has already contracted more than 1.9 million units, with public investment exceeding R$ 300 billion.
As this volume grows, the dependence on the FGTS also increases, and any attempt to redirect resources is seen as a real threat to the supply of housing and the pace of construction.
The relief for workers with debts clashes with the historical role of the fund
The most sensitive point of this discussion lies precisely in the conflict between two real needs. On one side, the government is trying to find a way out for families in debt.
On the other side, the sector insists that the FGTS was designed to protect workers in specific moments and, at the same time, finance structural areas of the economy.
The Curator Council of the fund, linked to the Ministry of Labor and Employment, recently reinforced that the FGTS finances public housing policies, sanitation, and urban infrastructure, in addition to managing a savings account that gathers around 260 million active and inactive accounts, with accumulated resources of approximately R$ 700 billion.
This is the reason why the construction sector treats the topic as something larger than a simple withdrawal flexibility.
For the sector, opening the door to new uses could change the logic of the fund, reduce predictability, and weaken the long-term financing base that supports a good part of the low-income projects.
It is this fear that lies behind the public pressure from developers, employer unions, and real estate market representatives since the proposal came to light.
The Ministry of Finance and the Ministry of Labor and Employment will have to balance credit, housing, and employment
The dispute now focuses on the final design that may or may not emerge from the discussions between the Ministry of Finance and the Ministry of Labor and Employment.
If the government moves forward, it will have to show how it intends to help workers with debts without draining a source considered strategic for construction and housing policy.
If it retreats, it will maintain the traditional function of the FGTS, but will continue to be pressured to present quicker alternatives to alleviate family delinquency.
In the end, the proposal exposes a dilemma that affects millions of Brazilians. On one side is the immediate pressure of those who need to reorganize their financial lives.
On the other side is a fund that supplies construction, sustains jobs, and helps put low-income families into their own homes.
That is why the debate has moved from the technical sphere to the political arena: tampering with the FGTS today means simultaneously affecting credit, housing, employment, and growth.
What do you think about this proposal? Leave your comment and share the article with those who follow the economy, housing, and the real estate market.
What do you think about this discussion? Leave your comment and share this article with those who follow the economy, housing, and the real estate market.
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