The initial version of the modern day flag was first adopted on 25 September 1930 by State law no.

While seeking recognition from the United States government, the revolutionary Antônio Gonçalves da Cruz [pt] presented a flag with three stars that he said represented the three provinces.

[4] Getúlio Vargas and João Pessoa, natives of Rio Grande do Sul and Paraíba respectively, were part of the Liberal Alliance, which was a political alliance formed between the two states and Minas Gerais to run against the presidential nominee Júlio Prestes after he was nominated by Brazilian president Washington Luís as his successor.

[3][5] The modern flag was officially used until the Brazilian Constitution of 1937 abolished the usage of all municipal and state symbols in favor of national ones.

[5] The word nego on the flag is the first person present tense of the Portuguese word negar (to refuse) and was said by João Pessoa when he refused to support the practice of Milk coffee politics and the candidacy of Júlio Prestes.