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Lula government releases R$ 1.16 billion through the New PAC to renew public transportation in Brazil with 727 buses in cities of São Paulo, Pernambuco, Minas, Rio, and other states, including electric and less polluting models.

Written by Ana Alice
Published on 21/05/2026 at 23:42
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New PAC selects billion-dollar proposals to renew urban fleets in eight states, with electric buses and less polluting models at the center of a federal policy focused on public transportation.

The federal government has selected new proposals from the New PAC – Urban Mobility totaling approximately R$ 1.16 billion for the purchase of 727 urban buses in eight states.

The measure, announced by the Ministry of Cities on May 18, 2026, is part of the Fleet Renewal axis aimed at private public transport operators and will be financed with resources from the Workers’ Severance Fund, the FGTS.

The new phase foresees the replacement and expansion of fleets used in urban public transport.

According to the Ministry of Cities, the projects include companies operating in municipalities of São Paulo, Minas Gerais, Rio de Janeiro, Pernambuco, Santa Catarina, Rio Grande do Sul, Ceará, and Paraná.

The package includes electric buses and models with Euro 6 technology, a standard used in vehicles with stricter emissions control.

According to the Social Communication Secretariat of the Presidency, Euro 6 vehicles reduce the emission of polluting gases and increase the energy efficiency of urban fleets.

São José dos Campos leads investment in electric buses

The largest share of the selection was allocated to São José dos Campos, in the interior of São Paulo.

The municipality had a proposal of R$ 879.4 million selected for the acquisition of 400 electric buses, the largest volume of vehicles planned among the projects announced by the Ministry of Cities.

The capital of São Paulo also entered the new round of the New PAC.

In São Paulo, R$ 41 million was selected for the purchase of 30 electric buses intended for urban public transport.

The two São Paulo proposals together concentrate the majority of the resources announced in this phase.

In the case of electric buses, technical entities in the mobility sector associate the technology with reducing local emissions during operation and reducing noise on the roads.

The final environmental impact, however, depends on factors such as the electric matrix, recharging infrastructure, fleet maintenance, and operational planning.

Pernambuco will have new Euro 6 buses in public transport

In the Northeast, Pernambuco appears with one of the largest blocks of selected vehicles.

The proposal includes Recife, Olinda, Paulista, Abreu e Lima, Igarassu, Araçoiaba, Itapissuma, and Itamaracá, with more than R$ 102 million for the purchase of 126 Euro 6 buses.

The original list released in the consulted information repeated the municipality of Igarassu.

In this version, the textual duplication was removed to avoid repetition, without altering the set of cities informed in the official and sectoral sources.

Operations in Pernambuco involve private companies operating in the metropolitan system.

According to a publication by Diário do Transporte, based on the Ministry of Cities’ ordinances, Transportadora Itamaracá had financing approved for R$ 52.9 million, while Cidade Alta Transportes e Turismo obtained authorization for R$ 49.1 million.

The adoption of Euro 6 vehicles is linked to emission control standards applied to heavy vehicles.

In Brazil, the Air Pollution Control Program for Motor Vehicles, the Proconve, is managed by Ibama and defines phases with progressive limits for pollutants emitted by light and heavy vehicles.

Fleet renewal reaches the South, Southeast, and Ceará

In Santa Catarina, Blumenau was included with R$ 38.5 million for the acquisition of 60 Euro 6 buses.

In Rio Grande do Sul, Caxias do Sul had a proposal of R$ 20.3 million selected for 24 vehicles of the same standard.

In Paraná, Curitiba and Pinhais appear with R$ 6.8 million for eight Euro 6 buses.

In Minas Gerais, Belo Horizonte will have R$ 38 million in selected proposals for 38 Euro 6 buses.

Sectoral survey based on the ordinances informed that the financing in Belo Horizonte involves three companies operating in the capital of Minas Gerais: Auto Omnibus Floramar, Salvadora Empresa de Transportes, and Auto Omnibus Nova Suissa.

In Rio de Janeiro, Volta Redonda, Barra Mansa, and Pinheiral were included in a proposal of R$ 16 million for 21 Euro 6 buses.

In Ceará, Maracanaú, Maranguape, Pacatuba, Redenção, Juazeiro do Norte, Crato, and Barbalha appear with R$ 19.1 million for 20 vehicles.

FGTS financing will be allocated to private operators

Although part of a federal policy of the New PAC under the Lula government, the announcement was not presented as a direct transfer to the municipalities.

Official information indicates financing with FGTS resources for proposals from private operators selected in the Fleet Renewal axis.

After selection, companies need to complete the steps required to formalize the operations.

The entry of new buses into circulation depends on subsequent processes, such as financing contracting, acquisition, manufacturing or delivery of vehicles, and incorporation into the serviced lines.

The Ministry of Cities states that fleet renewal aims to modernize systems, increase operational efficiency, and improve the quality of service offered to the population.

The department also links the measure to the cities’ environmental agenda by prioritizing vehicles with lower pollutant emissions and greater energy or fuel efficiency.

Urban public transport remains under debate in the country

The replacement of buses is one of the actions discussed within the urban mobility policy in the country.

In different cities, topics such as fleet age, waiting time, overcrowding, fare cost, integration between modes, and decline in passenger numbers appear in debates about public transport.

Urban mobility experts often point out that vehicle renewal can improve aspects such as comfort, accessibility, and operational regularity.

The sector’s assessment, however, also considers that service quality depends on line frequency, bus priority in traffic, permanent financing, contract supervision, and network planning.

The selection of 727 buses places fleet renewal among the federal government’s investment fronts for public collective transport.

Electric buses concentrate most of the resources, mainly due to the projects planned in São José dos Campos and São Paulo.

The Euro 6 models, in turn, appear as a technological update alternative in cities that still mainly operate with diesel buses.

Under current environmental regulations, this standard follows stricter emission limits compared to previous generations of heavy vehicles.

The execution of projects still depends on the financial and operational stages following selection.

For users, the concrete effects can only be measured after the vehicles arrive in local systems and their integration into the daily operation of the lines.

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Ana Alice

Content writer and analyst. She writes for the Click Petróleo e Gás (CPG) website since 2024 and specializes in creating content on diverse topics such as economics, employment, and the armed forces.

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