NYC Launches Pre-Paid Card Program to Assist Migrant Families in Hotels
ICARO Media Group
In a bid to provide aid to migrant families temporarily housed in New York City hotels, Mayor Eric Adams' administration is set to implement a pilot program that will distribute pre-paid credit cards to asylum seekers. The $53 million initiative, managed by New Jersey's Mobility Capital Finance, aims to offer financial assistance for purchasing food and essential baby supplies, according to city records.
Scheduled to commence with a group of 500 migrant families staying in short-term hotel accommodations, the program will replace the current food service being provided at these locations, City Hall officials confirmed. The pre-paid cards will only be usable at authorized establishments such as bodegas, grocery stores, supermarkets, and convenience stores. In order to remain eligible for the program, migrants must sign an affidavit stating that the funds will solely be used for food and baby supplies; failure to comply will result in expulsion from the program.
The Immediate Response Card initiative appears to draw similarities with the state's Supplemental Nutrition Assistance Program (SNAP), commonly known as the food stamp program, which provides lower-income New Yorkers with a credit card to cover their meal expenses. The amount loaded onto each pre-paid card will vary based on factors such as family size and income status, as outlined in the contract details. For example, a family of four could receive nearly $1,000 each month, equating to a daily allowance of $35 for food. The cards will be replenished every 28 days.
Last year, a similar form of pre-paid cards was issued to financially struggling residents of city housing to cover the expenses of holiday dinners. MoCaFi, the company entrusted with distributing the funds, expressed enthusiasm about partnering with New York City and stated their commitment to expanding financial access for marginalized individuals such as asylum seekers, while simultaneously stimulating the local economy, said MoCaFi CEO and founder Wole Coaxum.
If the pilot program proves successful, the city plans to extend the initiative to all migrant families currently residing in hotels, estimated to be around 15,000 individuals. Mayor Adams' spokesperson, Kayla Mamelak, mentioned that apart from facilitating the purchase of culturally relevant diets and essential baby supplies, the program is expected to yield significant cost savings for New York City. Mamelak stated, "The pilot program is projected to save the city over $600,000 per month, totaling more than $7.2 million annually."
Previously, the city had allocated approximately $11 per meal to provide food for migrant families in hotels, a practice that proved challenging as asylum seekers from various countries craved the taste of home. Many migrants interviewed by The Post expressed their preference for cooking in their hotel rooms due to the unsatisfactory quality of provided meals.
This announcement follows hot on the heels of The Post's revelation of an additional $137 million in contracts with city hotels to accommodate over 750 rooms for asylum-seeking families. Currently, New York City is home to over 66,000 asylum seekers, with an additional 1,500 arrivals last week. This ongoing crisis is projected to incur a total cost of $10 billion by 2025.