Portugal's Government Unveils New Mobility Subsidy Model for Azores and Madeira

New Mobility Subsidy Model Approved

The Ministry of Infrastructure and Housing announced today the approval of a new model for the Social Mobility Subsidy during the Council of Ministers meeting. This subsidy aims to support regular travel between the mainland and the islands of the Azores and Madeira.

Objectives of the New Model

According to the announcement, this decree-law establishes a uniform legal regime aimed at simplification, efficiency, and equal treatment among the Autonomous Regions. The new model will provide the Social Mobility Subsidy to residents, equivalent residents, and students using regular air services between the mainland and the Autonomous Regions, as well as inter-island maritime services.

Financial Details

• The maximum eligible cost remains €400 for Madeira and €600 for the Azores.
• Residents of the Azores will pay a maximum fare of €119 (down from €134) for trips to the mainland, while students will pay €89 (down from €99).
• Madeira residents will pay €79 (down from €86), and students will pay €59 (down from €65).
• For inter-regional travel, both residents and students from the two archipelagos will pay €79 and €59, respectively.

Improvements and Goals

The previous model, in place since 2015, provided a variable subsidy per trip, reimbursed after verifying passenger eligibility. The new model aims to promote economic development and territorial cohesion, while also addressing historical and geographical challenges. Key improvements include:

• Harmonization of subsidy regimes across regions.
• Maintenance of current maximum passenger costs.
• Creation of an electronic platform to manage subsidy allocation.
• Ensuring beneficiaries only pay the net amounts after the subsidy is deducted during ticket purchase.

Enhancing Social Cohesion

The Social Mobility Subsidy is recognized as a crucial element for social cohesion, bridging gaps across the national territory. Minister Miguel Pinto Luz emphasized its role in overcoming historical contingencies and geographical constraints.

Inclusion of Immigrants

The new decree also addresses concerns regarding the eligibility of non-Portuguese nationals, expanding subsidy access to immigrants residing in the Azores for at least six months. This change is expected to benefit over 3,000 individuals who previously lacked access to the subsidy.

Recent Controversy

In September 2024, the government's decision to impose a €600 cap on reimbursements for air travel to the mainland sparked controversy, as residents were previously reimbursed for amounts exceeding €134, regardless of ticket price.