Tarcísio de Freitas' government in São Paulo withheld resource transfers to municipalities in 2025, frustrating allies in a pre-electoral year. Despite late releases, mayors are pressuring for more funds amid fiscal challenges. The state highlights direct investments as an alternative.
Tarcísio de Freitas' administration (Republicanos) withheld resource transfers for municipalities to carry out investments in 2025, such as vehicle purchases and construction works, frustrating allies who hoped to showcase these deliveries in a pre-electoral year ahead of the 2026 elections.
In 2024, adjusted for inflation, commitments for transfers totaled R$ 1.7 billion, according to the Secretariat of Finance and Planning. In 2025, up to the second half of December, it was nearly R$ 1.27 billion. In the last week of the year, following public demands, the government released an additional R$ 424 million, nearly matching the previous year's total, just R$ 5 million short.
Mayors from the governor's base are balancing pressure for funds with political loyalty. On January 9, in Anhumas (550 km from the capital), 17 mayors from the Pontal do Paranapanema region gathered to request resource releases. A banner at the event read "SOS governor: cities in western São Paulo seek help". Mayor Adailton Menossi (PSD) clarified: "this here is not a protest, this banner is just a request".
In the Alto Tietê region, mayors are organizing a similar movement, and PP-linked municipalities are considering supporting another candidate if Tarcísio seeks reelection. Transfers occur through agreements, often funded by parliamentary amendments. In 2025, R$ 171 million went through voluntary amendments, compared to R$ 367 million in 2024 (adjusted).
Affected projects include reforms of buildings for municipal guards, schools, small road works, tractor purchases, and soccer fields. The year saw weak revenue collection in São Paulo, leading to reduced transfers, according to Fred Guidoni, APM president: "Cities receive more responsibilities, but their share of revenue does not keep up".
Politicians criticize the resource release process at Palácio dos Bandeirantes, pointing to disagreements between the secretariats of Arthur Lima (Civil House) and Gilberto Kassab (Government and Institutional Relations). About 65% of 2025 transfers came from the Government Secretariat. Kassab focused on reorganizing the PSD for 2026, including mayor affiliations.
In a statement, the government claims to have invested R$ 3.5 billion in municipalities over three years, plus over R$ 30 billion in mobility and logistics. "Transfer and investment actions are planned in an integrated manner," the text states, emphasizing dialogue with mayors and parliamentarians.
