Costa Rica’s Legislative Assembly has given final approval to an extraordinary budget that redirects ₡70 billion (about $154 million) previously assigned to childcare, nutrition and housing programs toward pensions and other social assistance. Lawmakers approved the measure in a 30–24 vote, with the governing Pueblo Soberano party providing the votes needed for passage. Legislators from all opposition parties voted against it.
The most controversial change removes ₡40 billion (about $88 million) from the Centers for Education and Nutrition and Comprehensive Childcare, commonly known here as CEN-CINAI. The nationwide program provides childcare, meals, health monitoring and nutritional support for children and pregnant or breastfeeding women from low-income households.
Another ₡30 billion (about $66 million) will be taken from the Housing Subsidy Fund administered through the Mortgage Housing Bank, known as Banhvi. That fund finances housing grants for families that cannot afford to purchase, build or repair a home without government assistance.
Of the ₡70 billion being redirected, ₡60.48 billion (about $133.1 million) will go toward closing a funding gap in Costa Rica’s noncontributory pension system, which is administered by the Costa Rican Social Security Fund. The remaining ₡9.52 billion (about $20.9 million) will be transferred to the Mixed Institute for Social Aid, or IMAS, for assistance programs serving people living in poverty.
Government lawmakers presented the move as a transfer between social programs rather than a reduction in social spending. They argued that the money will continue supporting vulnerable groups, particularly older adults who depend on noncontributory pensions and families receiving IMAS assistance.
Opposition legislators rejected that explanation, saying the government is solving funding problems in some social programs by weakening others. They argued that CEN-CINAI centers already face waiting lists, infrastructure problems and growing demand from families unable to find places in other public childcare programs. The ₡40 billion reduction represents a substantial portion of the program’s 2026 funding.
The housing reduction could also have an immediate effect on low-income families. Banhvi has warned that approximately 2,400 families could lose access to a housing subsidy because of the ₡30 billion transfer. Opposition lawmakers also questioned how the changes were introduced. The transfers from CEN-CINAI and the housing fund were added through motions during the legislative committee process and were not included in the extraordinary budget originally submitted by the Executive Branch.
Three lawmakers from the National Liberation Party filed a constitutional challenge asking the Constitutional Chamber to determine whether Congress exceeded its authority by adding the changes without a corresponding proposal from the Executive Branch. The court agreed to examine the complaint but had not issued a ruling when lawmakers gave the budget final approval. The legislation will now be sent to President Laura Fernández for signature and publication.
The budget contains several other disputed items. It authorizes the creation of 25 permanent administrative positions at the Ministry of National Planning and Economic Policy, known as Mideplan. The positions cover areas including public investment, international cooperation, development planning, public-sector management and the Civil Service.
Funding for those posts will initially come from approximately ₡442 million (about $973,000) returned by the Supreme Electoral Tribunal because Costa Rica did not require a second round in the 2026 presidential election. Government officials have said Mideplan made adjustments to prevent the positions from creating an additional net expense beginning in 2027.
The legislation also transfers ₡70 million (about $154,000) within the Presidency’s existing budget to its information and communications program. The money will be used for travel, publicity, communications equipment, computers and sign-language interpretation at official events.
That transfer does not increase the Presidency’s overall budget. It moves money from other internal accounts, including funds previously assigned to legal compensation and the annual school salary payment. Opposition lawmakers nevertheless questioned the priority given to presidential communications while other agencies requested money for security, environmental protection and public services.
The extraordinary budget also incorporates ₡167.93 billion (about $369.5 million) from World Bank financing and ₡17.51 billion (about $38.5 million) for sustainable agriculture programs. Supporters said the budget guarantees continued pension payments and provides resources needed by public institutions during the second half of the year.
Opponents said it reflects poor planning and forces children, families waiting for homes and other vulnerable groups to absorb the consequences. The disagreement is now likely to continue outside the Legislative Assembly as the Constitutional Chamber reviews whether the disputed transfers followed Costa Rica’s rules for changing the national budget.
