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Brazil Weighs Zero-Fare Transit as Government Awaits Finance Ministry Study

Next steps hinge on Finance Ministry cost estimates to shape a shared funding plan across federal, state and municipal levels.

Overview

  • Cities Minister Jader Filho said the country cannot postpone the zero-fare debate and that his ministry will move quickly once the Finance Ministry delivers its numbers requested by President Lula.
  • After the fiscal analysis is presented, the Cities and Finance ministries plan to draft a joint proposal focused on a federative pact with contributions from all levels of government.
  • Jader Filho argued that the current fare-based model no longer works, citing rapid deterioration of public transport and the loss of riders.
  • Reporting based on technical assessments indicates implementation during the current term is unlikely, with the idea expected to feature in the 2026 electoral platform.
  • The government is evaluating universal free fares and partial options such as Sundays and holidays, will consider municipal pilots, and has already committed nearly all of the recently released R$501.4 million in the Cities budget.