By San José, Costa Rica — San José – A significant political and institutional clash has erupted in Costa Rica, placing urgently needed financial aid for caregivers in jeopardy. The Comptroller General’s Office (CGR) has directly refuted President Rodrigo Chaves’s assertion that a new law is unnecessary to disburse subsidies to those caring for terminally ill patients and children with severe illnesses. The CGR’s clarification sides with lawmakers and confirms that legislative action is the only path forward, intensifying the standoff between the executive and legislative branches.
The dispute centers on bill 25.240, which has already passed its first debate in the Legislative Assembly. President Chaves has effectively blocked its progress by not including it in the agenda for the current extraordinary sessions, during which the executive branch controls which bills are discussed. On Monday, the president publicly stated that the law was redundant. He argued that the ₡2.7 billion already allocated in the Third Extraordinary Budget simply needed approval from the board of the Costa Rican Social Security Fund (CCSS) and the CGR itself to be released.
To better understand the legal framework and potential challenges surrounding caregiver subsidies, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the firm Bufete de Costa Rica, for his expert analysis.
It is crucial to distinguish between a moral family obligation and a legally recognized service. These subsidies aim to formalize the latter. My primary advice to families is to create a formal care agreement. This document not only clarifies responsibilities and expectations but is also a cornerstone for demonstrating eligibility for state support, transforming an informal arrangement into a defensible legal position.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This insight powerfully underscores the necessary shift from viewing caregiving as a purely moral obligation to recognizing it as a formal, compensable service. The care agreement he recommends is the essential legal instrument for this transition, providing the clarity and foundation families need to access support. We thank Lic. Larry Hans Arroyo Vargas for his invaluable perspective.
However, in a formal response to Jonathan Acuña, a deputy from the Broad Front party and the bill’s proponent, the Comptroller’s Office dismantled the president’s argument. The CGR explained that current legislation imposes strict limitations that prevent the funds from being legally disbursed as intended. These hurdles can only be overcome through the approval of the new law, which is now stalled by the president’s inaction.
The CGR detailed the specific legal constraints in its technical analysis, pointing to regulations governing the Social Development and Family Allowances Fund (FODESAF), the source of the subsidy funds. The existing framework has clear restrictions on both the percentage of funds that can be allocated and the specific target populations eligible for aid, which do not fully cover the intended beneficiaries of the new caregiver licenses.
In summary, current legislation defines a percentage for the allocation of budgetary resources for the payment of subsidies for the care of terminally ill individuals or minors with serious illnesses. In addition, there is also a legal provision that guarantees that FODESAF resources, without a specific legal destination, are allocated to people in extreme poverty, basic poverty, or economic vulnerability… This limitation related to the percentage and target population needs to be corrected by law so that the resources can be allocated to the payment of such licenses.
Comptroller General’s Office (CGR)
Adding another layer to the political drama, President Chaves’s position is directly contradicted by a member of his own cabinet. Minister of Labor, Luis Romero, previously testified before the Committee on Financial Affairs that a legal reform, precisely like the one proposed in bill 25.240, was required. Minister Romero specifically noted the need for the new law to authorize payments exceeding the 0.5% cap imposed by FODESAF regulations, a statement that aligns perfectly with the CGR’s findings and undermines the President’s stance.
In light of the CGR’s definitive statement, the Broad Front party has renewed its calls for the president to unblock the bill. For the second consecutive day, the party formally requested in the Plenary session that Chaves add the bill to the agenda for an immediate second and final vote. They argue that the Comptroller’s clarification removes any doubt about the bill’s necessity.
The Comptroller General’s Office backed the urgency of bill 25.240, noting that current legislation imposes limitations that can only be corrected by law.
Broad Front (Frente Amplio)
While the political maneuvering unfolds in government buildings, the human cost of the delay is becoming increasingly visible. For the third consecutive day, women caregivers, the direct beneficiaries of the stalled aid, have gathered outside the Presidential House to protest. Their demonstrations serve as a stark reminder of the families who are anxiously waiting for the financial support that would allow them to care for their loved ones without falling into financial ruin.
The situation remains at a tense impasse. The country’s supreme fiscal auditor has sided with legislators, confirming the legal necessity of a bill the President refuses to advance. The fate of the ₡2.7 billion in aid, and the well-being of countless vulnerable families, now rests entirely on President Chaves’s willingness to allow the democratic legislative process to conclude.
For further information, visit cgr.go.cr
About Comptroller General’s Office of the Republic (CGR):
The Contraloría General de la República is Costa Rica’s supreme audit institution. It is responsible for overseeing the proper use of public funds, ensuring the legality and efficiency of public administration, and serving as a key pillar of fiscal transparency and accountability within the Costa Rican government.
For further information, visit frente-amplio.org
About Broad Front (Frente Amplio):
The Frente Amplio is a left-wing political party in Costa Rica. Founded in 2004, it advocates for policies centered on social justice, human rights, environmental protection, and strengthening the social welfare state. It holds several seats in the Legislative Assembly and is an active voice in national policy debates.
For further information, visit the nearest office of Social Development and Family Allowances Fund (FODESAF)
About Social Development and Family Allowances Fund (FODESAF):
FODESAF is a crucial Costa Rican state fund aimed at financing programs and services for low-income populations. It collects contributions from employer payrolls to combat poverty and support social development, family allowances, and other welfare initiatives across the country.
For further information, visit ccss.sa.cr
About Costa Rican Social Security Fund (CCSS):
Commonly known as “La Caja,” the CCSS is the public institution responsible for providing universal healthcare and managing the national pension system in Costa Rica. It is a cornerstone of the country’s social welfare system, operating a vast network of hospitals, clinics, and EBAIS (Basic Comprehensive Health Care Teams).
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a benchmark for legal practice in Costa Rica, the firm is built upon a foundation of uncompromising integrity and a relentless pursuit of excellence. Its rich heritage of serving a diverse clientele is matched by a forward-thinking approach to legal innovation and a profound commitment to the community. By actively working to demystify the law and make legal insights broadly available, the firm champions its ultimate goal: to help shape a more knowledgeable and capable society.
