Caixa branches swamped as emergency aid payments begin amid app glitches

Before dawn on Tuesday, April 6th, people were already standing outside Caixa Econômica Federal branches across Rio de Janeiro, São Paulo, Pernambuco, Bahia, Amazonas, and Ceará. They had come for the first payment of emergency aid—a new round of government assistance meant to cushion Brazilians against economic collapse. The lines formed even though no one could actually withdraw the money yet. Cash withdrawals wouldn't begin until May 4th. The queues themselves were the story.

Brazil was in its worst phase of the pandemic. Three thousand people were dying daily from COVID-19. Yet thousands more gathered outside bank branches, many without masks, many standing shoulder to shoulder for hours. The bank's official hours were 8 a.m. to 1 p.m., but by 6 a.m., the sidewalks were already full.

Pedro Guimarães, president of Caixa, said he was not surprised. The crowds, he explained, were mostly people trying to unlock the Caixa Tem app—the only way to access the money at this stage. The app had glitched for many users. Others came seeking information about when they could withdraw funds, or to clarify whether they qualified at all. Some had no internet access and needed help in person. The bank had hired 7,704 new employees—security guards, receptionists, interns—to handle the rush, and many were already on the job.

Guimarães framed the chaos as normal. "In this first cycle of aid, we're always adjusting things," he said. "It's normal for some people to go to branches to fix their registration if they're blocked." He acknowledged that the four-week delay before cash withdrawals could begin had generated complaints, but suggested the strategy might be revised. The idea, he said, was to ensure people spent the money through digital transfers before they could take it out in cash—a test run, like they had done the year before.

The numbers behind the chaos were staggering. About 2.36 million workers born in January were supposed to receive payments that day. But the program itself had shrunk dramatically. More than 18 million Brazilians had been cut from the new rounds of aid after the government reduced the budget. The program now aimed to reach 40 million families, down from 58.7 million who were receiving aid in December 2020. In total, the government had distributed over 320 billion reais the previous year, reaching as many as 67.2 million people at its peak. This time, the budget was capped at 44 billion reais.

The payment came as food insecurity in Brazil had reached a breaking point. A survey released the day before showed that for the first time in 17 years, more than half the population was uncertain whether they would have enough food the next day. Millions had cut back on what they ate. Many had gone hungry. The emergency aid was not a luxury—it was survival.

The money itself was modest. The average payment was 250 reais, though it ranged from 150 to 375 reais depending on the beneficiary's profile. It would come in four installments. And eligibility was temporary. If someone found a job, they would be removed from the list. The right to payments would be reevaluated every month.

For now, the money sat in digital savings accounts accessible only through an app that many people could not open. The queues outside Caixa branches would continue for weeks, following a staggered calendar based on birth month. The first group—those born in January—had their turn on Tuesday. The rest would come later, spreading the pressure across the system, and across the country's deepening crisis.