Brazil starts Bolsa Família welfare payments at new value

Brazil’s state-owned bank Caixa Econômica this Wednesday (Jan. 18) is starting to pay out the January allowance of the Bolsa Família income transfer program, at a minimum BRL 600.

This month, the federal government’s welfare initiative should reach 21.9 million families, with payments adding up to BRL 13.38 billion and the average family receiving BRL 614.21.

Starting this month, the welfare program—formerly called Auxílio Brasil (“Brazil Aid”) and payed out a monthly BRL 400 under the previous administration—will be dubbed Bolsa Família (“Family Grant”) again. The minimum value of BRL 600 was guaranteed after the approval of a bill which allowed the government to spend up to BRL 145 billion outside the spending cap this year, of which BRL 70 billion is destined to fund the benefit.

President Luiz Inácio Lula da Silva wrote on his social media that retaining the minimum value installment is in line with a commitment forged between the new government and Congress.

“We will start the payment of BRL 600 for families in the program—a commitment made during the campaign and an achievement made possible thanks to the bill we passed during the transition, as the amount had not been planned for in the budget by the previous government,” President Lula’s post reads.

The extra BRL 150 for families with children up to six years old has not started yet. Last week, Minister of Development and Welfare Wellington Dias said the additional amount will not start being paid until March, after efforts to eliminate fraud are concluded.