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Body practices and physical activities (BPPA) are associated with benefits for individual and collective health. Previous studies have revealed significant challenges in implementing the Federal Cost-Sharing Incentive for Physical Activity (IAF) from the perspective of the federal management of Brazil's Unified Health System (SUS). This study aimed to identify the challenges and potentialities highlighted by municipal management in implementing the IAF. This is an exploratory qualitative study conducted through a questionnaire administered to municipal managers, with thematic categorical content analysis. From a total of 14 valid responses, the following categories emerged: Conceptions and Approaches to the IAF and BPPA; Physical Education Professionals as part of the SUS Workforce; Financial Resources; Health Information Systems; Physical Infrastructure and Material Resources; Potentialities and Challenges of IAF. In conclusion, various factors are related to the success or failure of IAF implementation, and further research on similar topics is essential to better understand the challenges of the IAF for municipal management.