Brazil President Lula sanctions new public‑transport financing law

President Luiz Inácio Lula da Silva signed Law No. 15.432/2026, the Marco Legal do Transporte Público Coletivo, on 14 June 2024. The legislation modernises urban public‑transport policy by diversifying financing away from sole reliance on passenger fares. It authorises the use of advertising revenue, commercial space exploitation and funds from the Contribuição de Intervenção no Domínio Econômico (Cide) to subsidise fares and opens debate on a possible zero‑fare model.

The law establishes minimum quality standards for regularity, punctuality, accessibility, safety and passenger satisfaction, and links operator remuneration to performance. Presidential vetos removed provisions that would obligate states and municipalities to fully fund gratuities for seniors, students and people with disabilities, and that would tie subsidies to operator earnings, citing fiscal sustainability and the need to preserve local autonomy. Other vetoed items include mandatory bus‑toll exemptions and a fixed allocation of 60 % of Cide revenue to urban areas. The government says the changes aim to expand funding options while avoiding new mandatory expenditures for sub‑national governments.