Brazil school transport legislative developments

Legislative developments in Brazil have focused on improving the efficiency and financing of school transportation. In mid-August, the Senate Education Commission approved a substitute text for Bill 743/2023, which seeks to optimize existing fleets by allowing teachers and certain students to use vacant seats in rural school transport vehicles. By the end of August, legislative efforts expanded to include financial support for the sector. A joint commission approved changes to Provisional Measure 1366/26, which extends long-term financing opportunities to school transport drivers. This measure utilizes the Social Infrastructure Investment Fund (FIIS) to facilitate fleet acquisition, renewal, and accessibility adaptations. The proposal includes flexible payment models and differentiated rates for female drivers, with management involving institutions such as BNDES, Banco do Brasil, and Caixa Econômica Federal. On August 31, the Brazilian Chamber of Deputies approved MP 1366/26, authorizing up to R$ 30 billion in credit through the Move Brasil program. While targeting app drivers, taxi cooperatives, and delivery workers, the measure also includes school transport professionals. Provisions include financing for fleet renewal—including electric motorcycles, bicycles, and hybrid models—and vehicle adaptations for accessibility. The National Monetary Council (CMN) established differentiated interest rates to promote social inclusion, setting rates for women at approximately 11.5% compared to 12.5% for men. Credit lines allow for repayment over up to 84 months, with a maximum vehicle value of R$ 200,000. The measure now moves to the Senate for further analysis. Following the Chamber's approval, the Senate has advanced MP 1366/2026, maintaining the R$ 30 billion allocation for vehicle financing through the Move Brasil program. The program supports app drivers, taxi drivers, cooperatives, and school transport professionals, offering flexible payment terms of up to 84 months and a vehicle value ceiling of R$ 200,000, which includes hybrid models.