The document provides an analysis of how Brazilian federalism impacted the "Mensalão" corruption scandal of 2005 under President Lula. It argues that features of Brazil's federal system, such as disproportionate representation of states in Congress, hindered the executive's ability to build governing coalitions and pass policies. This was exacerbated by Lula's Workers' Party ideology that resisted rewarding political allies with jobs. As a result, the administration resorted to illegal monthly payments to gain legislative support. The document concludes that the scandal illustrates the informal rules of Brazil's clientelist system that future governments must follow to be effective, and highlights how political culture shapes the effects of federalism.