New York City Mayor Eric Adams has introduced a groundbreaking $53 million pilot program aimed at providing financial assistance to migrants housed in the city's hotels.
The initiative, managed by Mobility Capital Finance (MoCaFi), seeks to replace the traditional food service provided to migrant families with pre-paid cards, giving them the flexibility to purchase food and essential baby supplies according to their preferences.
NYC's Immediate Response Card Program
The program, named the Immediate Response Card initiative, will commence its trial run at the Roosevelt Hotel in Manhattan, involving 500 families. Each family of four will be allocated a card loaded with $1,000 per month, equivalent to $35 per day, to cover their food expenses. This move is estimated to save the city a significant sum, with Mayor Adams projecting monthly savings of $600,000 and an annual saving of $7.2 million.
The Immediate Response Card operates on a system similar to the state's food stamp program, SNAP, providing lower-income individuals with a credit card to meet their meal expenses. The card can only be utilized at designated establishments, including bodegas, grocery stores, supermarkets, and convenience stores. To ensure compliance, migrants must sign an affidavit pledging to use the funds exclusively for food and baby supplies, with the consequence of expulsion from the program for misuse.
Wole Coaxum, CEO and founder of MoCaFi, expressed enthusiasm about the partnership with New York City, emphasizing MoCaFi's commitment to expanding financial resources for individuals, such as asylum seekers, who may face exclusion from traditional banking systems. Coaxum stated, "MoCaFi looks forward to partnering with New York City to disburse funds for asylum seekers to purchase fresh, hot food while helping the local economy."
The program is not only expected to provide families with the ability to choose culturally relevant diets and baby supplies but is also anticipated to yield substantial cost savings for the city. Kayla Mamelak, spokesperson for Mayor Adams, affirmed, "Not only will this provide families with the ability to purchase fresh food for their culturally relevant diets and the baby supplies of their choosing, but the pilot program is expected to save New York City more than $600,000 per month, or more than $7.2 million annually," according to New York Post.
NYC Shifts to Pre-Paid Cards for Migrant Families
The existing practice of providing meals to migrant families has been costly, with the city spending approximately $11 per meal. This has led to challenges as some asylum seekers, hailing from diverse regions like Central and South America, Africa, and Europe, may find the provided meals unpalatable. Recent revelations exposed DocGo, a controversial company, wasting thousands of dollars on uneaten meals, prompting migrants to express a preference for cooking in their hotel rooms.
The pre-paid card initiative comes on the heels of the disclosure that the city has entered into contracts worth $137 million with hotels to accommodate over 750 rooms for asylum seekers with families.
With over 66,000 asylum seekers currently housed in the city and an expected cost of $10 billion through 2025 to address the ongoing crisis, Mayor Adams is exploring innovative solutions to alleviate the financial burden on the city.
If the pilot program proves successful at the Roosevelt Hotel, Mayor Adams intends to expand it to all 15,000 migrant families currently residing in hotels throughout the city. As the administration grapples with the challenges posed by an influx of migrants, this initiative represents a proactive and cost-effective approach to meeting the essential needs of vulnerable populations within the city.
