Commodities June 1, 2026 04:27 PM

Kast lays out crime, fiscal and growth package in first congressional address as approval slides

President announces bills targeting security, immigration, electricity rates and small-scale mining amid street clashes and political turbulence

By Ajmal Hussain

President Jose Antonio Kast used his first national address at the opening of Congress to unveil a concentrated legislative and administrative program centered on public security, spending cuts and measures to spur economic growth. Speaking from the congressional chamber in Valparaiso, Kast proposed strengthening police forces, tightening immigration controls and removing some social benefits from those with criminal convictions, while also putting forward reforms on electricity pricing, bureaucracy reduction and modernization of small and medium mining. The speech comes as the president faces falling approval ratings, recent cabinet dismissals and street clashes between protesters and police.

Kast lays out crime, fiscal and growth package in first congressional address as approval slides

Key Points

  • Kast announced a legislative and administrative agenda focused on crime reduction, spending cuts and economic growth, including strengthening police and tightening immigration controls - impacts security and immigration policy sectors.
  • Bills were unveiled to reform electricity rates, reduce bureaucracy and modernize medium and small-scale mining, along with an existing growth and job-creation bill already in Congress - impacts energy, utilities and mining sectors.
  • The address follows political turbulence: drops in approval ratings and recent cabinet dismissals, and it coincided with clashes between protesters and police in Valparaiso - impacts political stability and public policy implementation.

President Jose Antonio Kast, who assumed office in March, presented a compact legislative agenda on Monday as Congress convened, prioritizing crime reduction, fiscal restraint and policies intended to boost the economy. Delivering his first national address from the congressional chamber in the port city of Valparaiso, Kast outlined a sequence of bills and administrative initiatives he intends to move forward immediately.

In his remarks the president said the government would pursue a suite of security-oriented actions, including measures to strengthen police capabilities, tighter immigration controls and proposals to rescind some social benefits for individuals with criminal convictions. "Starting tomorrow we’re going to move forward with a very intense legislative and administrative agenda," he said.

Kast also detailed plans aimed at the economic and regulatory environment. He announced proposed legislation to alter electricity rates, steps to reduce bureaucratic hurdles and measures to modernize medium and small-scale mining operations. These items are presented alongside an existing bill already before Congress that is framed as a mechanism to stimulate growth and create jobs.

The address arrived at a politically sensitive moment for the administration. Kast is attempting to restore momentum after an early decline in public support and turbulence within his cabinet. Observers have noted that fulfilling campaign commitments on security and the economy is central to shoring up his political base.

Outside Valparaiso’s congressional precincts the speech coincided with unrest on the streets, where protesters clashed with police. The president emphasized a compact goal for his term: that Chileans "live better, are safer and have more opportunities" when his mandate ends.

The president’s early months in office have included notable challenges. Soon after taking office, government actions in response to the Iran war led to a sharp rise in fuel prices. In May, Kast dismissed his security minister and another senior cabinet official following mounting criticism, highlighting internal strains within the government.

Political standing appears to have shifted since the election. Kast won the 2025 presidential runoff by a wide margin on a platform emphasizing tougher measures on crime and immigration. However, public approval has dropped from 57% to 38%, according to pollster Cadem, a decline that adds urgency to the administration’s efforts to pass its agenda.


Bottom line: Kast has launched an ambitious and security-focused legislative push at the start of the congressional session, coupling law-and-order proposals with measures on energy rates, red tape and mining modernization, even as political headwinds and social unrest present immediate tests for implementation.

Risks

  • Declining public approval and cabinet turnover could hinder the administration's ability to pass and implement its legislative agenda - risk to political stability and governance.
  • Street clashes and social unrest present uncertainty for policy rollout and could affect investor and market sentiment in sectors linked to security and infrastructure.
  • Earlier moves that raised fuel prices after the Iran war created economic pressure; such price volatility can complicate fiscal management and undermine public support for reforms - risk to energy and consumer sectors.

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