Presidential secretary Gilberto Carvalho met with legislators representing religious groups that have opposed the campaign and emerged to say that Rousseff decided to delay the program. He did not provide details on what material in the videos and pamphlets was considered inappropriate by Rousseff. The materials were to be distributed to children of varying ages across Brazil.
"The government maintains its clear position against any type of homophobia," Carvalho said. "It's important that this material, to be productive and to reach its goals, be the result of extensive consultation with society, to not generate this type of controversy."
The civil rights group Grupo Gay da Bahia says 260 gays, lesbians, bisexuals and transgender people were murdered in Brazil last year. That was up 113 percent from 2005.
"Evangelical church groups and their allies in Congress threatened to block any upcoming legislation unless President Rousseff halted the films," adds the BBC.
LGBT activists are outraged and want the decision reversed.
In March, the U.S. and Brazil announced they would promote LGBT rights among member nations of the Organization of American States Earlier this month, Brazil's Supreme Court unanimously ruled that same-sex civil unions must be recognized.