President José Antonio Kast held a meeting this Wednesday at the Montt Varas Hall in La Moneda Palace with approximately 130 mayors to address concerns regarding the impact of property tax exemptions for senior citizens on the Municipal Common Fund (FCM).
According to Executive Branch estimates, exempting individuals over 65 from property taxes will reduce the fund by approximately $200 million. While the Government has indicated it will replenish $130 million through the Budget Law, it has yet to clarify the fate of the remaining $70 million, according to CNN Chile.
The meeting included officials from 15 different ministries, including ministers and undersecretaries. During the session, municipal leaders requested to participate in working groups to tackle issues such as security, education, school coexistence, and the operation of Local Public Education Services (SLEP).
The President spent about 20 minutes addressing the attendees, emphasizing the need to restore institutional stability. “Regardless of political affiliation—and now that we are entering a two-year period without elections—all mayors need to solve people's day-to-day problems. Street lighting, security, and healthcare have no political color,” Kast stated.
Representing the opposition, Quinta Normal Mayor Karina Delfino expressed disagreement with the tax reduction due to its direct impact on residents. Delfino also linked this measure to other potential budget cuts, mentioning the newborn essentials program and questioning the reduction of programs such as ‘Calles Sin Violencia’ (Violence-Free Streets) and the Universal Guaranteed Pension (PGU), according to CNN Chile.
Peñalolén Mayor Miguel Concha criticized the government's lack of response to the drug trafficking crisis in his municipality. Concha noted that he expects concrete security actions following campaign promises, having previously requested an increased police presence without seeing results, according to the same source.
From the ruling coalition, Las Condes Mayor Catalina San Martín maintained that there is a widespread consensus among mayors that the Municipal Common Fund must not be compromised. Meanwhile, La Florida Mayor Daniel Reyes praised the opportunity for dialogue to voice the concerns of his constituents.
In parallel, the 'Miscellaneous Law'—dubbed the National Reconstruction Plan by the Government—is facing strong internal resistance within the Christian Democratic Party (DC). More than 70 party members released a public statement demanding the total rejection of the initiative, according to El Mostrador.
The signatories accuse the project of being a “badly named reconstruction effort” and describe it as a disguised tax reform that bundles unrelated matters together without separate debate. The document also challenges the proposal for 25-year tax stability, warning that it seeks to “shield” the current economic model.
Tensions within the DC are deepening as members intend to uphold the agreement made by the party's National Council on April 21, 2026. This agreement calls for the rejection of the legislative proposal and the filing of constitutional reservations, particularly regarding tax matters, according to El Mostrador.
