The Adams administration initiated a new program this week distributing prepaid debit cards to migrants, following a controversial $53 million contract agreement with Mobility Capital Finance (MoCaFi), a New Jersey-based firm.
The program kicked off at the Roosevelt Hotel, where migrants received eight preloaded Mastercards, with plans to extend the issuance to 115 cards by the following week, as stated by a spokesperson from City Hall.
This pilot program, emerging from a one-year deal criticized for bypassing the usual competitive bidding process, is anticipated to serve approximately 460 of the 64,500 migrants under the city’s care, aiming to streamline the process of providing sustenance to migrants.
Originally intended to supply a month’s worth of necessities, the modified plan now requires weekly replenishment of funds, with a family of two adults and young children estimated to receive around $350 per week.
According to the contract, the program has the potential to be advantageous for MoCaFi, as it could yield $1.8 million by receiving a percentage from the funds loaded onto every Mastercard.
This initiative has sparked widespread debate, with many believing Mayor Adams is prioritizing migrants’ lives over the lives of New Yorkers.
The mayor’s office has portrayed the initiative as a cost-saving measure. However, some have noted that this program will give more money to migrants than to New Yorkers enrolled in the SNAP benefits program.
City Hall defends the emergency contract as a critical step to expedite the launch of this cost-reducing strategy despite a two-month delay in the distribution of the debit cards.
Kayla Mamalek, a spokesperson for the Adams administration, remarked, “This cost-saving measure will replace the city’s current system of providing non-perishable food boxes to migrant families staying in hotels, much of which is often discarded.”
The administration asserts that the new debit card program could result in monthly savings of up to $600,000.
“This is going to be part of our cost-saving measures. We’re going to save $600,000 a month, $7.2 million a year,” Adams said last month.
City officials maintain that the program would also enable families to buy fresh food aligned with their “culturally relevant diets.”
Officials indicated that if the pilot program proves successful, they would consider extending it to encompass all migrant families residing in hotels.
The program is intended to substitute the non-perishable food boxes currently provided to migrant families lodging in hotels such as the Roosevelt.
According to Mamelak, the cards will be allocated approximately $12.52 per person per day for 28 days.
The migrant crisis continues to pose a major concern. New York City anticipates that the expenses associated with migrant care will surge to $12 billion within the upcoming three years.
In response to the crisis, the federal government has pledged to allocate $106 million to reimburse New York City for its efforts.
City officials report that in the fiscal year of 2023, New York City expended $1.45 billion to aid migrants.
