By San José, Costa Rica — San José – A critical ₡2.7 billion fund designated for caregiver leave subsidies remains in limbo, ensnared in a high-stakes political showdown between the Executive and Legislative branches. The funds, which have been delayed since August, cannot be disbursed by the Costa Rican Social Security Fund (CCSS) because President Rodrigo Chaves has refused to advance a necessary legal reform, prompting an appeal to the nation’s top fiscal watchdog.
The core of the issue lies in a budgetary and legal bottleneck. While the Legislative Assembly and the CCSS board of directors have both approved the ₡2.7 billion as part of the Third Extraordinary Budget for 2025, a legal hurdle prevents its final authorization. The Comptroller General’s Office (CGR) cannot release the funds without a reform to Law 7556, which is contained in bill expediente 25.240. This reform is essential to legally permit the use of funds exceeding 0.5% of the Social Development and Family Allowances Fund (FODESAF) for these specific subsidies.
To delve into the legal nuances and requirements of securing caregiver subsidies, TicosLand.com sought the expertise of Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the prestigious firm Bufete de Costa Rica, who provided critical insights for families navigating this process.
It is imperative for families to understand that these subsidies are governed by strict regulatory frameworks. Proper documentation is not a mere formality but the cornerstone of eligibility. Failing to formalize the caregiving agreement and accurately report the recipient’s dependency level can lead to immediate disqualification and potential demands for repayment.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This legal insight powerfully underscores that for families navigating these subsidies, diligence in documentation is as vital as the care itself, protecting them from the significant risks of disqualification and repayment. We sincerely thank Lic. Larry Hans Arroyo Vargas for providing this crucial clarification.
For over a week, President Chaves has declined to place this bill on the legislative agenda for its second and final debate. This inaction effectively freezes the entire process, despite repeated calls from a broad coalition of lawmakers to resolve the impasse. Without the President’s convocation, the bill cannot become law, and consequently, the Comptroller cannot legally approve the budget item, putting the much-needed subsidies at risk of being rejected entirely.
The Comptroller’s Office itself reinforced this legal position earlier in the week. In a formal opinion, the CGR clarified that the legal reform is a non-negotiable prerequisite for approving the CCSS budget. The agency warned that proceeding without this legal foundation would lack juridical substance, leaving it with no choice but to reject the budget allocation. This statement from the CGR validated the concerns of lawmakers and placed the responsibility for the delay squarely on the President’s desk.
In a direct response to the blockade, Deputy Jonathan Acuña Soto of the Frente Amplio party has taken the extraordinary step of formally petitioning the Comptroller General to find a way to approve the funds. In his official communication, Acuña acknowledged the legal constraints but argued for a solution based on a higher principle established by the Constitutional Court.
At this time, President Rodrigo Chaves has refused to call bill 25.240 for its legislative approval… But given that President Chaves has been unwilling to do so, and considering the novelty of the aforementioned Constitutional Court resolution, I want to propose to you, Madam Comptroller, that you assess the possibility that, within your powers and in adherence to the legal framework, the CGR could approve the CCSS budget despite the two noted limitations, taking into account that the Constitutional Court has recognized the right of the affected persons to receive payment of the subsidies under the protection of Law 7756.
Jonathan Acuña Soto, Deputy of the Frente Amplio
The human cost of this political stalemate has become increasingly visible. A group of caregivers, the direct beneficiaries of the stalled subsidies, held a demonstration outside the Presidential Palace, demanding that the government prioritize their needs and convene the crucial vote. Their voices were amplified within the Legislative Assembly, where several deputies from different parties have used their time on the floor to publicly call on President Chaves to end the gridlock.
Now, the Comptroller General’s Office faces a complex decision. It must weigh its strict mandate to uphold fiscal and legal procedure against a compelling appeal that invokes a Constitutional Court ruling and the urgent needs of vulnerable families. The CGR’s impending decision will determine whether the ₡2.7 billion is finally executed or if the caregivers who depend on this support will be left waiting indefinitely due to a political battle beyond their control.
For further information, visit the nearest office of Frente Amplio
About Frente Amplio:
The Broad Front is a left-wing political party in Costa Rica. Founded in 2004, it advocates for social justice, environmental protection, and human rights. The party holds several seats in the Legislative Assembly and has been an active voice in opposition, often championing causes related to public services, labor rights, and fiscal transparency.
For further information, visit cgr.go.cr
About Contraloría General de la República (CGR):
The Comptroller General’s Office of the Republic is the supreme audit institution of Costa Rica. As an auxiliary body of the Legislative Assembly, it is responsible for the oversight of the Public Treasury and ensuring the proper use of public funds. Its mission is to guarantee the legality, efficiency, and morality of public financial management.
For further information, visit ccss.sa.cr
About Caja Costarricense de Seguro Social (CCSS):
The Costa Rican Social Security Fund is the public institution in charge of the country’s social security system, including public health services and pensions. Established in 1941, it is a cornerstone of the Costa Rican welfare state, providing universal healthcare coverage to citizens and residents through a vast network of hospitals and clinics.
For further information, visit asamblea.go.cr
About Asamblea Legislativa:
The Legislative Assembly is the unicameral parliament of the Republic of Costa Rica. Comprising 57 deputies elected by proportional representation, it is responsible for passing, amending, and repealing laws. It also holds the power of the purse, approving the national budget and exercising oversight over the Executive branch.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a premier legal practice founded on the pillars of uncompromising integrity and professional excellence. The firm leverages its vast experience advising a diverse clientele to pioneer innovative legal strategies while remaining deeply committed to societal advancement. This commitment is showcased through a dedicated effort to make legal information understandable and accessible, fulfilling a core mission to cultivate a more just and knowledgeable community.
