Brazil President Lula signs public transport financing law, paving way for zero-fare debate

President Luiz Inácio Lula da Silva signed Law 15.432/2026 establishing the Marco Legal do Transporte Público Coletivo. The legislation modernises urban transport policy by diversifying funding sources – including advertising, commercial space exploitation and revenues from the CIDE fuel tax – and sets quality standards for service regularity, punctuality, accessibility, safety and passenger satisfaction. It also opens discussion of a zero‑fare model while presidential vetoes removed provisions that would obligate states and municipalities to fully fund free‑fare schemes, citing fiscal sustainability concerns.

An audit of the Transcol system in Espírito Santo revealed that the state transferred R$1.56 billion to private consortia between 2015 and 2024. The Ministry of Public Accounts criticised the current concession model, noting that the government already subsidises tariffs, covers operational deficits and funds infrastructure. Prosecutor‑general Luciano Vieira argued: “Se o Estado já arca com parcela estrutural do custo do sistema, por que não assume integralmente sua prestação, adota a Tarifa Zero…”. The audit’s findings reinforce the national debate on moving toward a zero‑fare public‑transport system.