The Economic Development Commission of Ecuador's National Assembly has recently approved the report necessary for the first debate regarding an urgent law project. This initiative seeks to amend the Organic Code of Territorial Organization, Autonomy, and Decentralization (Cootad), specifically addressing the sustainability and efficiency of spending by decentralized autonomous governments (GAD). The meeting, which took place on February 12, 2026, gathered six votes in favor, with the document now set to proceed to the full Parliament for further consideration. During the session, the commission, which is predominantly comprised of members from the ruling party, discussed various observations that have now been incorporated into the final text of the report. The proposed changes emphasize establishing fiscal rules aimed at ensuring sustainable and rational spending practices within local governments. The executive's proposal notably directs GAD to allocate at least 70% of their budget to investments, maintenance, public service provision, and fulfillment of their responsibilities, ensuring that public funds are used effectively while maintaining essential services. This initiative holds significant implications for local governance in Ecuador, as it seeks to enhance fiscal responsibility among decentralized authorities. By mandating specific budget allocations, the reform aims to strengthen the financial autonomy of GAD and ensure that public investments are directed toward critical areas that support community needs. As the bill progresses through deliberation in the National Assembly, it will be closely monitored for its potential impact on local government operations and the overall governance landscape in Ecuador.