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Brazil Rules Out Free Bus Fares for 2025–26, Orders Only Feasibility Studies

The Casa Civil says the president requested analysis pending an economic review of sector costs, subsidies, employer contributions, worker expenses and technology.

Overview

  • Chief of Staff Rui Costa said there is nothing scheduled for this year or next and urged caution to avoid creating false expectations about zero fare transit.
  • Costa stated that President Luiz Inácio Lula da Silva asked only for studies on feasibility, speaking in an interview with radio stations in the Salvador metropolitan area on October 8.
  • Finance Minister Fernando Haddad said the economic team is conducting a diagnostic of urban transport to gauge viability, examining total costs, public subsidies, employer funding via vale-transporte, impacts on workers and technological bottlenecks.
  • Proposals cited in the debate include an employer-paid Public Transport Tax starting from the tenth employee, along with revenue from advertising, fines on concessionaires and a municipal fund, which remain under discussion.
  • Officials said the studies will be presented to the president with an assessment of funding needs and possible sources, and no decision timeline has been set.