The Chilean government submitted a bill to Congress to raise up to USD 1.35 billion for rebuilding homes and infrastructure damaged by 2026 wildfires in Ñuble and Biobío. The plan mixes direct fiscal spending, tax incentives, and private investment attraction, without permanent tax hikes. Mayors from affected areas call for swift approval, while facing criticism from Valparaíso.
The administration of José Antonio Kast submitted a major bill to Congress on Tuesday to address the impacts of wildfires that ravaged Ñuble and Biobío, burning over 42,000 hectares and claiming 21 lives. It raises the ceiling of the Temporary Emergency Fund for Fires to $1.2 trillion pesos (about USD 1.4 billion), aiming to rebuild 4,429 homes.
Housing Minister Iván Poduje stressed the funding urgency in a radio Duna interview: “One cannot finance reconstruction with regular resources because it is a catastrophic, unexpected event.” The bill features temporary revenue mechanisms, a 50% cut on donation taxes to boost private contributions, and payment relief plus debt waivers for affected families and SMEs.
It also aims to speed up projects by shortening administrative timelines, streamlining environmental reviews, and curbing lawsuits, targeting the “permisología” that stalls investments. For housing, it offers temporary VAT exemptions on new builds and incentives for DFL2 properties.
Mayors from Penco and Tomé demand quick action. Penco's Rodrigo Vera stated: “Over 3,540 homes completely destroyed. Without this bill, there is no reconstruction.” Tomé's Ítalo Cáceres noted 16 homes delivered but emphasized 526 destroyed, requiring USD 500 million for Biobío.
Valparaíso Mayor Camila Nieto criticized the approach: “It reduces the burden on those who have more, while weakening the state's capacity.” The proposal balances rebuilding with economic growth via private investment.
