The city of São Paulo has allocated more than R$ 500 million from its Urban Development Fund (Fundurb) for the paving of roads, an action that has sparked criticism regarding the misallocation of funds originally intended for affordable housing and public transport improvements. The investments have been made under the administrations of current mayor Ricardo Nunes and his predecessor Bruno Covas, with figures indicating that R$ 514 million has been spent on paving between 2020 and 2025, constituting 6.1% of the total R$ 8.3 billion budgeted for that timeframe.

In 2024 alone, nearly 70% of the paving expenditure, which amounts to R$ 353 million, was committed right before Nunes' re-election campaign. The mayor's administration defends this decision by stating that the total of R$ 3.7 billion has been used for housing-related actions, thereby emphasizing a broader commitment to housing despite the significant funds being diverted for road paving. The contrasting priorities have raised questions about whether the city's policies are truly addressing the need for affordable housing among its residents.

The government has responded to the criticism alleging that the media is undermining important public policies meant to benefit São Paulo. As the city's housing struggles continue, this financial strategy may have long-term implications for urban development and the welfare of low-income residents, highlighting the contentious debate over resource allocation in the face of pressing social needs.