NYC Launches $53M Program To Provide Pre-Paid Credit Cards To Migrant Families
New York Mayor Eric Adams’ administration has embarked on a $53 million pilot program designed to aid migrant families residing in city hotels. The initiative, managed by New Jersey-based Mobility Capital Finance, will distribute pre-paid credit cards to asylum seekers at the Roosevelt Hotel for purchasing necessities.
The program aims initially to benefit 500 migrant families living in temporary hotel accommodations, supplanting the current food services available to them. These cards are exclusively accepted at local bodegas, grocery shops, supermarkets, and convenience stores. Recipients of the program must commit, through an affidavit, to spend the allocated funds solely on food and baby items. Failure to comply with this agreement would result in their removal from the program.
Dubbed the Immediate Response Card initiative, the program resembles New York’s SNAP food stamp program by providing financial assistance on an identical scale to cover meal costs.
The assistance amount loaded onto each card will be determined by the family size and any additional income earned. For example, a family of four could receive close to $1,000 per month for their nutritional needs, equating to roughly $35 per day. The cards are scheduled for replenishment every 28 days.
This method of support is not unprecedented, as economically disadvantaged citizens in city housing previously received a similar type of card to assist with holiday meal expenses.
MoCaFi CEO Wole Coaxum commented on the partnership with New York City, highlighting MoCaFi’s mission to extend access to financial resources to the unbanked populations, including asylum seekers, while simultaneously boosting the local economy.
The city plans to roll out the program more broadly to all migrant families residing in hotels, estimated at 15,000, should the pilot prove successful. An expected outcome according to Adams’ spokesperson Kayla Mamelak is also to save the city in excess of $600,000 each month, which translates to an annual savings of more than $7.2 million.
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