Financing for equity in pre-primary education
1. Education resources to subnational governments
2. Education resources to institutions
3. Education resources to students and families
4. Social policies and family support programmes
Introduction
Key financing indicators (UIS Data)
Four years old is the official entrance age to pre-primary education. Two years of free and compulsory pre-primary education are granted in legal frameworks. For 2022, the net enrolment rate for pre-primary for both sexes was 75.32%.
Governance
Under the revised Constitution (as amended by Constitutional Amendments No. 14/1996, No. 53/2006, and No. 108/2020), states and the Federal District must prioritize elementary and secondary education, while municipalities focus on elementary and early childhood education (Article 211, paragraphs 2 and 3). Under Article 211 of the Federal Constitution of 1988, as amended by Constitutional Amendments No. 14/1996, No. 53/2006, and No. 108/2020, Brazil adopts a collaborative federal model in which responsibilities for education are shared among the Union, states, the Federal District, and municipalities.
Municipalities finance education through their own tax revenues and constitutional transfers. Pursuant to Article 212 of the Federal Constitution, at least 25% of tax revenues and constitutional transfers must be allocated to the maintenance and development of education.
FUNDEB operates as a redistributive mechanism within each state, allocating resources according to enrolment and weighted per-student criteria. At least 70% of FUNDEB resources must be allocated to the remuneration of basic education professionals, including those working in early childhood education. Since 2020, the federal government has provided complementary transfers (see section 1).
Tuition-free status
Two years of free pre-primary education are granted in legal frameworks.
1. Education resources to subnational governments
FUNDEB (Fund for the Maintenance and Development of Basic Education and Appreciation of the Teaching Profession) is Brazil’s permanent financing mechanism for public education, covering expenses such as teachers’ salaries, training, and school transportation. At least 70% of FUNDEB resources must be allocated to the remuneration of basic education professionals, while the remaining share may finance other eligible MDE expenditures. It was established as a permanent policy by Constitutional Amendment No. 108 on August 27, 2020, and regulated by Law No. 14,113 on December 25, 2020, as the new FUNDEB.
Since 2007, FUNDEB funds have been allocated to municipalities to support early childhood and early primary education. The primary goal of FUNDEB is to reduce funding inequalities by equalising resources across education systems, helping to bridge gaps in per-student investment. The distribution of resources to municipal governments is based on weighted enrolment criteria and allocation is calculated according to the number of students in daycare, preschool, special education, and rural education.
The Union supplements the Fund's resources within each state and the Federal District whenever the annual amount per student (VAAF) falls below the nationally defined minimum.
The new FUNDEB mandates that 50% of total VAAT supplementary funds be allocated to early childhood education after distribution to school systems, ensuring part of the funds improve school infrastructure through investments in classroom construction, furniture, and necessary teaching equipment. Additionally, 20% of selected state and municipal taxes and constitutional transfers are automatically earmarked and pooled into state-level FUNDEB funds.
In addition to the VAAF and VAAT supplements from FUNDEB, there is another financing strategy based on educational indicators called VAAR (Annual Value per Student Result). The VAAR supplement encourages management practices and addresses educational inequalities among racial and socioeconomic groups. To qualify, federal entities must fulfill five conditions and demonstrate progress in service and learning indicators, with an emphasis on outcomes for black, brown, indigenous, and socioeconomically vulnerable students. School systems are required to identify gaps and implement strategies to address educational equity.
Finally, the Ministry of Education, via the Secretariat of Basic Education (SEB), has launched the Programme to Support the Maintenance of Early Childhood Education—New Establishments and New Classes. This programme provides financial resources to municipalities and the federal district to aid the expansion and operation of new enrolments in early childhood education until they qualify for funding from the Basic Education Maintenance and Development Fund (Fundeb). Established by Laws No. 12,499 and No. 12,722, and regulated by Resolutions No. 6 and 7 of 28 April 2025, the programme outlines the criteria and procedures for automatic financial transfers.
Funding is included in the MEC budget under Budget Action 00oW—Support for the Maintenance of Early Childhood Education, representing the sole specific MEC initiative for early childhood education. This financial support matches the minimum annual amount provided by Fundeb for full-time and part-time enrolments in daycare and preschool, with transfers managed by the National Education Development Fund (FNDE).
2. Education resources to institutions
FUNDEB resources are transferred to decentralised levels, which then distribute the funds to community, religious, or philanthropic institutions with government agreements. Transfers to partnered institutions occur through formal agreements and are permitted only under legally established conditions, as outlined in Law No. 14,113/2020, particularly for early childhood education.
Early childhood education is the stage at which private schools, when they have agreements with the government to offer places, receive funding from Fundeb.
Revenue for Salário-Educação (education salaries) comes from state and municipal quotas (2/3), distributed proportionally according to enrollment within each state, and from the federal quota (1/3) transferred by the FNDE, shared equally at the national level for implementing and maintaining national programs focused on basic education (such as the School Meal National Programme, PNAE), also based on enrollment. City governments can also allocate higher percentages than the minimum set by the Municipal Organic Law, depending on the political will of officials. The Salário-Educação is a social contribution (paid by companies) under Article 212, §5 of the Constitution, with revenue divided into a federal quota and state and municipal quotas, distributed proportionally based on enrolment.
Finally, some municipal taxes (IPTU, ISS, and ITBI) are not directly pooled into FUNDEB but remain subject to the broader constitutional requirement that at least 25% of revenues be allocated to education.
Dinheiro Direto na Escola - Direct Money at School Programme (PDDE)
The Direct Money at School Programme (PDDE), created in 1995, provides supplementary financial assistance to public schools. According to Resolution CD/FNDE No. 3 of March 7, 2024, resource allocationis based on a fixed amount determined by the type of school (ranging from BRL 1,850 to BRL 5,550) and a per capita amount determined by the type of student (ranging from BRL 20 to BRL 100). In 2021, Resolution CD/FNDE/MEC No. 15, dated September 16, 2021, established criteria for allocating additional financial resources to municipal, state, and district public schools located in rural areas—including countryside, indigenous, and quilombola communities (PDDE Equity)—as well as to special education schools (PDDE Special Education).
Within the scope of Actions Integrated with the PDDE, specifically Educational Programmes utilising the PDDE transfer model, there is a component dedicated to early childhood that decentralises resources to the Executive Units representing public basic education schools.´
In the Pernambuco State Government, Decree No. 56,132 of 2024, establishes a programme to encourage new early childhood education classes to address the shortage of daycare places. The state will transfer funds for 12 months after local governments open new daycare centers (for children aged 0 to 3) or preschools (for children aged 4 and 5), or until enrollment is funded by the Federal Government through the Fund for the Maintenance and Development of Basic Education and the Valorization of Education Professionals (Fundeb).
3. Education resources to students and families
The following programmes are state-level policies.
Goiás State Government offers Preschool assistance, outlined in Article 111 of Law No. 20,756 (January 28, 2020) and Decree No. 9,739 (October 27, 2020), available to civil servants earning up to R$ 5,500.00 with dependents aged 6 months to 5 years or persons with disabilities. The monthly assistance amount is R$ 200.00 per dependent enrolled in a recognized educational institution. This benefit replaces the previous daycare allowance with simpler rules and no selection process; civil servants need only meet the requirements specified in the law and regulations.
In the Pernambuco State Government, Law No. 13,463, dated June 9, 2008, provides school transportation to students in the State Education Network living more than 2.5 km from the school in rural areas, through technical and financial cooperation with municipalities or Regional Education Management Offices.
4. Social policies and family support programmes
Programa Bolsa Família (Family Allowance Programme)
The Family Allowance Programme was established by Provisional Measure No. 132 of October 20, 2003, and regulated by Law No. 10,836 of January 9, 2004. Established in 2003 (Provisional Measure No. 132/2003), converted into law in 2004, and formally reestablished by Law No. 14,601/2023, the program aims to combat poverty through conditional cash transfers tied to school attendance monitoring. It is managed by the Ministry of Development, Social Assistance, Family, and Fight Against Hunger. Families with a total income below BRL 218 per person per month are eligible, provided their school-age children are enrolled in school and vaccinated. The Ministry of Education tracks and enforces the minimum attendance required for beneficiary students (for children aged four to five, its 60% minimum 60% attendance; 6-17 years minimum 75% attendance) as mandated by the programme.
This profile was reviewed by Camila Maria Bortot, PhD, and Postdoc in Education (UFPR) and Professor and researcher (UENP), and by Rita Coelho, Coordenadora-Geral de Educação Infantil
