The administration (Republicans) held back the transfer of resources to city halls to make investments (such as purchasing vehicles or carrying out works) in 2025, frustrating the governor’s allies who hoped to present these deliveries to the population in a pre-election year.
In 2024, in values adjusted for inflation, the release (commitment) of resources to be invested through transfers to municipalities in São Paulo totaled R$1.7 billion, according to data from the Secretariat of Finance and Planning.
In 2025, until the second half of December, it had been almost R$1.27 billion. In the last week of the year, the São Paulo government released another R$424 million — almost equaling the amount from the previous year (just R$5 million less).
In a note, the government states that, in addition to transfers to city halls, it makes direct investments throughout the state, highlighting that it has made “more than R$30 billion in investments in urban mobility and logistics in different regions”.
With resources tied up, mayors from the governor’s base have been balancing between pressing for funds and maintaining the political alliance. On the 9th, in Anhumas (550 km from the capital of São Paulo), 17 mayors from the Pontal do Paranapanema region, in the northwest of the state, met to ask for the release of resources.
In the event hall, there was a banner with the phrase “SOS governor: cities in the west of São Paulo ask for help”. The mayor of Anhumas, Adailton Menossi (PSD), declared to the local press that “this is not a protest, this banner is just a request”.
Mayors of the cities of Alto Tietê, in the east of the state, articulate a similar movement, while city halls linked to the governor instead of the governor if his candidacy for re-election is confirmed.
Transfers to cities are made through agreements between the government and city halls, often supported by parliamentary amendments. In 2025, the government transferred R$171 million to municipalities via voluntary amendments, which depend on government decisions and are not mandatory. In 2024, it was R$367 million, in corrected values.
Among the projects that ran out of resources, there are renovations of buildings for municipal guards and schools, investments in small road works, purchases of tractors and construction of football fields, according to data from the Secretariat of Government and Institutional Relations.
The year was , which worried part of the governor’s team, such as the Sheet showed. The president of APM (Associação Paulista de Municípios), Fred Guidoni, former mayor of Campos do Jordão, assesses that, with an adverse fiscal scenario, it was natural for the state to reduce transfers.
“Cities, with each passing day, receive more responsibilities, more obligations, but their participation in the revenue collection does not keep up”, says the leader, highlighting the importance of city halls seeking alternative sources of revenue.
In addition to the budget issue, politicians interviewed by the report complained about the flow created to release resources at Palácio dos Bandeirantes.
Since Tarcísio’s first year in office, deputies have complained, behind the scenes, about the relationship between the secretaries Arthur Lima, from the Civil House, a childhood friend of the governor, and, from Government and Institutional Relations, national president of the .
The recurring complaint is that agreements reached with advisors linked to the Civil House did not progress when the processes reached the Government Secretariat, which, according to deputies and mayors, delayed the signing of agreements and the release of resources.
In total, 17 departments released resources to be transferred to city halls in 2025, and around 65% of the total was concentrated in the Government Secretariat.
Allies of the governor claim that Kassab was also focused, throughout the year, on the political reorganization of the PSD for the 2026 elections, working on the affiliation of mayors and expanding the party’s municipal base, which .
Kassab even articulated the possibility of running for state government if Tarcísio ran for President — a plan that was suspended after the senator (PL-RJ) announced his pre-candidacy, with the support of his father, Jair Bolsonaro (PL).
However, the governor’s allies credit the PSD president with working to contain criticism of Tarcísio among the mayors of the interior — Kassab’s advisor, when asked about the topic, said he was not aware of this action.
The report questioned Palácio dos Bandeirantes about reports of disagreement between the Kassab and Arthur Lima portfolios, but the note sent in response did not respond to this point.
According to the government, over the three years of his mandate, Tarcísio sent R$3.5 billion to São Paulo’s municipalities for investment, “reinforcing the Government’s commitment to municipal management and strengthening local administrations”.
“It is important to clarify that state investments are not limited to voluntary transfers”, says the text, highlighting that the state maintains “more than R$30 billion in investments in urban mobility and logistics in different regions of the state”.
“The transfer and investment actions are planned in an integrated manner by the various areas of the state government, with permanent coordination and continuous dialogue with mayors and parliamentarians”, says the text.
