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Brazil's House and Senate appointed new leaders on Saturday, pledging autonomy from President Luiz Inacio Lula da Silva's administration for their two-year terms, marking the final phase of Lula's presidency.

The selection of Hugo Motta as House speaker and Davi Alcolumbre as Senate president is expected to present challenges for Brazil's leftist leader. Both politicians garnered backing from conservatives and liberals by vowing to empower Congress in directing a larger share of Brazil's federal budget, potentially conflicting with Lula's priorities.

Members of Congress now oversee nearly a quarter of the federal funds earmarked for investments and policy execution, a percentage that has notably risen over the past decade. The regulations governing the use of these designated funds are currently under rigorous review by the Supreme Court, introducing tension between the judiciary and Congress.

In anticipation of his victory, Alcolumbre highlighted the earmarked funds issue as a primary concern for the upcoming term, affirming his commitment to preserving the Senate's independence. Similarly, Motta pledged in his address to lawmakers to fortify the House's autonomy and independence in its interactions with other branches of government.

Facing declining approval ratings and mounting pressure to deliver on campaign pledges, Lula is under scrutiny from both voters and investors wary of excessive spending by his administration. Despite being viewed by his party as the best candidate to combat a right-wing contender in the 2026 presidential race, Lula is striving to cultivate support for his successor.

In a rare press briefing, Lula reassured that he would respect the outcome of Saturday's congressional elections, emphasizing his intention to maintain a collaborative relationship with Congress. Lula is slated to meet with the newly elected leaders next week to discuss priorities, including efforts to promote economic fairness by proposing a tax exemption for individuals earning under 5,000 reais ($850), a measure contingent on broad Congressional backing.