NYC Launches $53M Program To Provide Credit Cards To Migrant Families

 


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New York City is launching a new food assistance pilot program that will provide $53 million in prepaid debit cards to migrant families residing in city hotels. The initial phase involves distributing cards to 500 families at the Roosevelt Hotel.

These debit cards will replace the current food delivery service, allowing families to independently purchase groceries and baby supplies. This modification is anticipated to not only benefit families by empowering choice over necessities but also yield estimated annual savings of over $7.2 million for the city.

Mayor Eric Adams’ office explained the program aims to accommodate cultural food preferences by empowering selection from sources like corner stores, supermarkets, and grocers. However, City Hall has yet to directly respond to inquiries regarding the plan’s details.

Families can solely utilize the debit cards at designated retailers like bodegas, grocery stores, and supermarkets. Recipients are expected to spend allotments exclusively on food and infant items or risk losing assistance.

Distribution amounts factor in household size and independent income, for example, a four-person family could receive around $1,000 monthly — approximately $35 daily for nourishment. Reloading will occur every 28 days.

The city has partnered with New Jersey-based Mobility Capital Finance to administer the initiative. Their CEO expressed enthusiasm to help asylum seekers access sustenance while supporting local enterprises.

Continued success with the initial 500 families may prompt scaling up to serve the remaining 15,000 migrant households temporarily housed in hotels across the city.

Since 2022, New York has received over 150,000 new migrants, straining housing resources. The mayor called this a “crisis” potentially costing $12 billion over three years. He even visited Latin America advocating against traveling to New York due to capacity constraints.

However, some worry that enhanced assistance risks incentivizing additional immigration.


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