Brazil municipalities miss R$704.6 million Fundeb investment in early childhood education

Since 2021, at least 835 Brazilian municipalities have failed to apply a combined R$704.6 million of Fundeb (Fund for Maintenance and Development of Basic Education) to early childhood education, contrary to constitutional requirements. The shortfall includes R$107 million in the state of Bahia, the largest single‑state amount, and R$99 million in mandatory infrastructure and school‑network investments.

In total, unspent funds for early childhood and related investments amount to roughly R$1.1 billion. According to cost parameters of the New PAC, that sum could finance the construction of 314 new creches and create about 30,000 full‑time daycare slots, addressing the 826,000 children waiting for a place in 2025. The Ministry of Public (MP) has launched a coordinated investigation to demand restitution of the missing resources and to check for possible misallocation.

The Fundeb was reformed in 2021, raising the federal complement from 10% to 23% by 2026 and introducing the VAAT (Annual Total Value per Student) model, which directs more aid to poorer municipalities. Half of the VAAT resources must be earmarked for early childhood education through the IEI (Early Childhood Education Index), yet many municipalities remain non‑compliant.