President Luiz Inácio Lula da Silva signed the new Public Collective Transport Legal Framework, known as Law No. 15.432/2026 [1], this week.
The measure aims to break the traditional funding model that relies almost exclusively on fares paid by users. By diversifying revenue streams, the government seeks to lower the financial burden on passengers and create a more sustainable system for urban mobility.
The law was published in the Official Gazette of the Union between June 14 [2] and June 15, 2026 [3]. While the legislation introduces broad changes to how public transit is financed, the president applied five vetos [4] to specific provisions regarding fare gratuity.
One of the primary objectives of the new framework is to remove the requirement for states and municipalities to fully fund gratuities on their own [5]. This shift allows local governments to seek broader support and alternative funding mechanisms to maintain essential services.
Additionally, the law modifies the application of resources from the CIDE-Combustíveis, a federal contribution on fuels [6]. By altering how these funds are distributed, the federal government intends to provide more flexible financial support for the modernization of public transport fleets and infrastructure [6].
Supporters of the measure said the new legal framework opens the door for future discussions regarding "zero fare" policies [7]. This transition toward subsidized transit is intended to improve accessibility for low-income populations, and reduce the operational pressure on municipal budgets [5].
The legislation comes as part of a broader effort to restructure urban transit across Brazil, moving away from a market-driven fare system toward a public service model supported by diverse tax revenues [5], [7].
“The measure aims to break the traditional funding model that relies almost exclusively on fares paid by users.”
This legislative shift represents a fundamental change in Brazil's approach to urban mobility by treating public transport as a social right rather than a self-sustaining business. By diversifying funding and adjusting fuel tax allocations, the government is creating the financial infrastructure necessary to potentially implement fare-free transit, which could significantly increase labor mobility and reduce urban congestion.
