Organization of the Brazilian State: The Union, the States, and the Municipalities

This page is a translation of the original Portuguese text, provided for convenience. It deals with Brazilian law. If there is any discrepancy, the Portuguese version prevails. Read the original in Portuguese

Brazil is a Federative Republic formed by the indissoluble union of the Union, the states, the municipalities, and the Federal District. Understanding this structure is essential to knowing who is responsible for the public services that affect your daily life.

Brazilian Federalism in the 1988 Constitution

Article 1º of the Federal Constitution defines Brazil as a Federative Republic, formed by the indissoluble union of autonomous entities. This form of state is so deeply embedded in the constitutional order that the federation is among the entrenched (unamendable) clauses of Article 60, §4º, item I, and cannot be abolished even by constitutional amendment. Disputes over which level of government holds authority are common, especially in sensitive areas such as health, education, and taxation.

Unlike unitary states, a federal system recognizes several centers of power that coexist in the same territory. Each entity has political, administrative, and financial autonomy. Autonomy, however, is not sovereignty. Sovereignty belongs only to the Federative Republic of Brazil, which the Union represents in international relations, under Article 21, item I, of the Constitution.

The Union: Powers and Responsibilities

The Union is the central federal entity, responsible for matters of national interest. It represents the country internationally, handles national defense, issues currency, operates postal services, organizes the financial system, and manages the main natural resources. The Union’s powers are listed in Articles 21 (administrative powers) and 22 (exclusive legislative powers) of the Constitution.

Note that many legislative subjects of general interest are reserved exclusively to the Union, such as civil law, commercial, criminal, procedural, labor, electoral, and agrarian law. In some cases, the Constitution itself allows a complementary law to authorize the states to legislate on specific issues within these subjects, but this authorization is the exception, not the rule.

The Union’s Property and Resources

Article 20 of the Constitution lists the Union’s property, including lakes, rivers, and any streams on land under its domain, river and lake islands in border zones with other countries, the territorial sea, mineral resources, and the lands traditionally occupied by Indigenous peoples. Note that when private parties are authorized to exploit these assets, they must follow specific rules that protect the public interest and ensure compensation to the affected entities.

The States: Autonomy and Residual Powers

The member states have their own government, a state constitution, a Legislative Assembly, an elected governor, and courts of justice. Their administrative and legislative powers are residual: whatever is not expressly assigned to the Union or the municipalities belongs to the states, under Article 25, §1º, of the Constitution. This approach draws on the American model of federalism.

Brazilian federalism is cooperative: the Union, the states, the Federal District, and the municipalities act together in many areas, even though each preserves its political, administrative, and financial autonomy.

Each state organizes its own services, maintains civil and military police, runs the prison system, operates piped gas services, and regulates the use of water resources within its territory. The Federal District is a hybrid: it holds the powers of both a state and a municipality, is governed by its own organic law (a local charter), and cannot be subdivided into municipalities.

The Municipalities: Unprecedented Autonomy Under the 1988 Constitution (CF/88)

The 1988 Constitution raised the municipalities to the status of federal entities, something uncommon in comparative law. Before, they were merely administrative divisions of the states. Under the new constitutional order, they gained their own Organic Law, an elected mayor and city council members, and specific legislative powers. Municipal responsibilities are set out in Articles 29 and 30 of the Constitution.

Municipalities may legislate on matters of local interest, supplement federal and state legislation where appropriate, create and collect the taxes within their authority, organize public transportation, provide health care services in cooperation with the Union and the states, and promote proper land-use planning. Keep in mind that within their sphere, many everyday decisions, such as urban zoning and business licenses, belong exclusively to the municipality.

Division of Powers: Exclusive, Private, Common, and Concurrent

The Constitution distributes powers among the federal entities through different mechanisms. Exclusive powers cannot be delegated, such as the Union’s power to issue currency. Private powers may be delegated to the states through a complementary law. Common powers are assigned simultaneously to the Union, the states, the Federal District, and the municipalities, such as protecting the environment and fighting poverty, set out in Article 23.

Concurrent powers, under Article 24, allow the Union and the states to legislate on certain subjects, with the Union setting general rules and the states supplementing them. If the Union does not act, the states may legislate fully. When a general federal rule is later enacted, it prevails over the state rule to the extent they conflict. To learn more about other constitutional guarantees, see the firm’s content on constitutional law.

Frequently Asked Questions

Are municipalities really federal entities?

Yes. The 1988 Constitution included the municipalities among the entities of the federation in Articles 1º and 18. They have political, administrative, and financial autonomy, their own Organic Law, a government elected by direct vote, and specific legislative powers, unlike under earlier constitutions.

Who resolves conflicts of authority between the Union and the states?

The Supreme Federal Court is the body with authority to decide federal conflicts involving laws or normative acts of the Union and the states. The decision may come through a direct action of unconstitutionality, a declaratory action of constitutionality, or a claim of noncompliance with a fundamental precept.

Is the Federal District a state or a municipality?

Neither, exactly. The Federal District is a federal entity with a hybrid nature, because it holds legislative and administrative powers that belong to both the states and the municipalities. It is governed by its own organic law and cannot be divided into municipalities, under Article 32 of the Federal Constitution.

As informações deste artigo são de caráter informativo e não substituem consulta jurídica individualizada. Cada caso possui particularidades que exigem análise específica.