Brazil adopts new legal framework to overhaul public‑transport financing

President Luiz Inácio Lula da Silva signed act nº 3.278, creating the Marco Legal do Transporte Público Coletivo. The law amends the Estatuto da Cidade and the Urban Mobility Law, shifting financing away from near‑total reliance on passenger fares toward a mixed model that includes additional funding sources, aims for economic sustainability, regional integration and fleet energy transition.

In the city of Patos de Minas, the municipal government announced it will keep the urban bus fare at R$ 3 and increase its annual subsidy by R$ 4 million. By allocating roughly R$ 21 million each year to the system, the city intends to absorb rising operational costs, modernise the fleet with air‑conditioned and Wi‑Fi‑equipped buses, and protect passengers – including students, seniors and people with disabilities – from fare hikes.

The national legislation and the local subsidy decision both reflect a broader push to modernise Brazil’s public‑transport system, improve service quality and ensure affordability while reducing dependence on fare revenue.