On February 9, 2016, the Obama Administration released its FY2017 budget request. According to the initial release, the Administration is requesting at least $925,000 in foreign aid for Brazil next year (see " U.S. Foreign Assistance and Trilateral Development Initiatives "). On January 19, 2016, the International Monetary Fund (IMF) published an updated World Economic Outlook that revised down its forecast for the Brazilian economy . The report estimated that the Brazilian economy contracted by 3.8% in 2015 and forecasted an economic contraction of 3.5% for Brazil in 2016 (see " Economic Challenges "). On December 18, 2015, President Obama signed into law the Consolidated Appropriations Act, 2016 ( P.L. 114-113 ). Among other provisions, the act authorized reforms to the IMF that had been pending since 2010 and will provide greater voting power to Brazil and other emerging economies. It also provided foreign assistance for Brazil, including $10.5 million to support conservation programs in the Brazilian Amazon (see " Amazon Conservation "). On December 2, 2015, Brazilian Chamber of Deputies President Eduardo Cunha initiated impeachment proceedings against President Rousseff for allegedly violating the country's fiscal responsibility law (see " Political Challenges "). On November 11, 2015, Brazil's Ministry of Health declared a "public health emergency of national importance" in response to a sharp increase in the number of infants born with microcephaly, a birth defect that may accompany significant, permanent brain damage. The increase is suspected, but not yet confirmed, to be linked to the emergence of Zika virus in Brazil (see " Zika Virus Response "). On June 30, 2015, President Rousseff met with President Obama at the White House. While the meeting produced few major policy announcements, it demonstrated both countries' willingness to move beyond a difficult period in bilateral relations in the aftermath of disclosures about National Security Agency (NSA) activities in Brazil (see " U.S.-Brazil Relations "). On June 29, 2015, President Obama signed into law the Trade Preferences Extension Act of 2015 ( P.L. 114-27 ), which extended the Generalized System of Preferences (GSP) program through 2017. GSP provides nonreciprocal, duty-free tariff treatment to certain products imported from Brazil and other designated developing countries. Authorization for the program had previously expired on July 31, 2013 (see " Bilateral Trade and Investment "). On June 25, 2015, the Brazilian Congress approved two bilateral defense cooperation agreements with the United States that had been pending since 2010 (see " Defense "). President Dilma Rousseff of the center-left Workers Party ( Partido dos Trabalhadores , PT) first assumed office in January 2011. Her predecessors, Presidents Fernando Henrique Cardoso (1995-2002) and Luis Inácio Lula da Silva (2003-2010), made notable progress in consolidating democratic governance, stabilizing the economy, and reducing the country's vast social disparities. Brazil also benefitted from favorable international economic conditions in the decade prior to her election, which, combined with the policies of her predecessors, facilitated stronger economic growth. Economic conditions began to deteriorate early in Rousseff's term, however, and her administration struggled throughout her first four years in office to address weak growth and popular discontent. Nevertheless, Rousseff was narrowly reelected. Now over a year into her second term, Rousseff is struggling to keep her campaign promises to protect social welfare programs and maintain low unemployment while simultaneously implementing austerity measures that many economists maintain are necessary to turn around Brazil's economy. Rousseff's political standing has weakened significantly as the economy has contracted and revelations about a major corruption scandal have come to light. Her public approval rating has drastically declined, and she has lost the support of many nominally allied legislators, some of whom have joined with the political opposition to initiate impeachment proceedings against her. Brazil occupies almost half of the continent of South America and is the fifth most populous country in the world with 204.5 million citizens. The country declared independence from Portugal in 1822, initially establishing a constitutional monarchy and retaining a slave-based, plantation economy. Brazil abolished slavery in 1888 and became a republic in 1889, but economic and political power remained concentrated in the hands of large rural landowners and the vast majority of Brazilians remained outside the political system. The authoritarian government of Getúlio Vargas (1930-1945) began the incorporation of the working classes but exerted strict control over labor as part of its broader push to centralize power. Vargas also increased the state's role in the economy and pursued import-substitution industrialization. Brazil enjoyed multiparty democracy between 1945 and 1964, but experienced polarization and instability as economic growth slowed, inflation increased, and populism gained strength. The Brazilian military seized power in a 1964 coup, ushering in two decades of authoritarian rule (1964-1985). Although repressive, the Brazilian military was not as brutal as those in some other South American countries. It nominally allowed the judiciary and Congress to function during its tenure, but stifled representative democracy and civic action, carefully preserving its influence during one of the most protracted transitions to democracy to occur in Latin America. According to Brazil's National Truth Commission, at least 434 people were killed or "disappeared" by the dictatorship. Brazil continued to pursue state-led development during most of the military era, and industrialization helped foster the transformation of Brazil into a predominantly urban society. Brazil restored civilian rule in 1985, and a national constituent assembly, elected in 1986, promulgated a new constitution in 1988. The constitution, as amended, establishes a liberal democracy with a strong president, a bicameral Congress consisting of the 513-member Chamber of Deputies and the 81-member Senate, and an independent judiciary. Power is somewhat decentralized under the country's federal structure, which includes 26 states, a federal district, and some 5,570 municipalities. Brazil experienced economic recession and political uncertainty during the first decade after the political transition. Numerous efforts to control runaway inflation failed, and two elected presidents did not complete their terms; one died before taking office, and the other was impeached on corruption charges. Brazil's economic and political situation began to stabilize under President Fernando Henrique Cardoso, who was elected to serve two terms between 1995 and 2002. A prominent sociologist of the centrist Brazilian Social Democracy Party ( Partido da Social Democracia Brasileira , PSDB), Cardoso's initial election in 1994 was largely the result of the success of the anti-inflation " Real Plan" that he implemented as finance minister under President Itamar Franco (1992-1994). The plan consisted of a new currency (the real ) pegged to the U.S. dollar, a more restrictive monetary policy, and a severe fiscal adjustment that included a 9% reduction in federal spending and an across-the-board tax increase of 5%. Prices immediately began to stabilize, with annual inflation falling from 2,730% in 1993 to about 18% in 1995. Cardoso continued the economic reform push after taking office, privatizing some state-owned enterprises and gradually opening the Brazilian economy to foreign trade and investment. These policies contributed to stronger growth rates for a few years, but macroeconomic stability remained elusive. Following the 1997 East Asian and 1998 Russian financial crises, concerns about Brazil's overvalued exchange rate and substantial fiscal deficits sparked a massive capital flight. Brazil adopted a floating exchange rate, and the real lost 40% of its value. Although Cardoso's popularity declined as Brazil struggled with these economic challenges, most analysts credit him with laying the foundation for the macroeconomic stability that Brazil has experienced since he left office. In the aftermath of the 1998-1999 financial crises, Brazil adopted the three main pillars of its macroeconomic policy: a floating exchange rate, a primary budget surplus, and an inflation-targeting monetary policy. Cardoso also established a series of targeted income transfer programs designed to alleviate poverty. These economic and social policies have been maintained and built upon by subsequent administrations. Luis Inácio Lula da Silva—known as Lula—was elected president of Brazil in 2002, his fourth attempt at the presidency as the candidate of the PT, which he helped found as a metalworker and union leader. During his first term, Lula maintained the market-oriented economic policies associated with his predecessor. He tightly controlled expenditures, raised the primary budget surplus, and granted additional autonomy to the Central Bank. At the same time, he placed greater emphasis on reducing poverty, reorganizing and expanding some of the social programs that had been initiated under Cardoso. The most high-profile program, Bolsa Familia ("Family Grant"), provides monthly cash transfers to poor families that ensure their children attend school and receive proper medical care. Lula's agenda stalled toward the end of his first term as several top PT officials were implicated in a vote-buying scheme. The scandal ultimately led to the convictions of 25 people—including Lula's former chief of staff—in 2012. Nevertheless, Lula was reelected in 2006. After primarily focusing on maintaining economic stability during his first term, Lula established a larger role for the Brazilian state in economic development during his second term. He expanded Bolsa Familia and launched new social welfare programs. He also continued to raise the minimum wage, which, adjusted for inflation, increased nearly 64% during his eight years in office. In response to the global financial crisis, the Lula Administration implemented a series of stimulus measures designed to offset declines in global demand with increased domestic consumption. Analysts have credited the administration's timely policy response for mitigating the effects of the crisis and facilitating recovery; the Brazilian economy contracted by 0.2% in 2009 before rebounding with 7.6% growth in 2010.