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The policy brief examines the Constitutional Financing Funds (FCFs) in Brazil's North, Northeast, and Midwest regions. It finds that while FCFs are designed to support small producers and low-income areas, the criteria for 'priority' beneficiaries and geographies have become so broad that they encompass nearly all producers and most municipalities. This lack of strict targeting has led to a concentration of resources in higher-value contracts and a small number of municipalities, particularly in the Matopiba region. Despite this concentration, FCFs remain a critical source of credit for the most underdeveloped municipalities in the North and Northeast, where alternative financing is often unavailable.

The Adaptation Fund lacks a formal, transparent methodology for defining and measuring 'particular vulnerability,' leading to an ad hoc allocation process. An analysis of 48 proposals (25 approved) shows that funding has reached a wide range of socio-economic conditions and HDI levels, with no clear pattern correlating approvals to national vulnerability indices. While the fund prioritizes concrete adaptation measures in agriculture and water, the absence of standardized vulnerability criteria undermines the ability to systematically compare project merits or ensure that the most vulnerable populations are prioritized.