New York City Mayor Eric Adams has decided to end a controversial program that provided migrants in taxpayer-funded shelters with prepaid debit cards for groceries. The decision came just two days after a phone call with President-elect Donald Trump, according to City Hall sources.
The pilot program, launched in March, aimed to reduce food waste and improve efficiency in migrant services but faced criticism over its no-bid contract process and overall cost.
The initiative, funded through an emergency $53 million contract with New Jersey tech startup Mobility Capital Finance (MoCaFi), distributed $2.4 million in preloaded Mastercards to approximately 2,600 migrant families. Families received around $350 per week to buy groceries and baby supplies, with the cards distributed at shelters housed in repurposed hotels. The program is set to conclude in January, with officials announcing it will not be renewed.
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Adams’ administration cited a decline in the number of asylum seekers in shelters and a shift toward competitive bidding for migrant services as reasons for discontinuing the initiative. The city’s migrant population has dropped from its peak earlier this year to approximately 60,000, easing some pressure on its shelter system.
Controversy Surrounding No-Bid Contract
The emergency contract with MoCaFi, first reported by The New York Post, drew backlash for bypassing the standard competitive bidding process. Critics questioned the city’s decision to select MoCaFi without seeking proposals from other vendors, with rapper 50 Cent among those publicly opposing the program. City Comptroller Brad Lander later revoked the administration’s authority to issue similar emergency contracts for migrant services, signaling increased scrutiny over how resources are allocated.
Despite the controversy, the Adams administration defended the no-bid agreement, arguing it was essential to avoid delays in implementing the program. Officials emphasized the need for rapid action to address the immediate needs of asylum seekers, many of whom had arrived in New York City with little more than the clothes on their backs.
Cost and Impact
The program’s total cost, including taxes and fees, reached $3.4 million. Of that, $2.4 million went directly to supporting local grocery spending, allowing migrant families to purchase their own food rather than relying on the city’s previous boxed-meal delivery system. City officials highlighted the absence of fraud or misuse in the distribution of funds, describing the program as effective in its primary goal of cutting food waste.
The boxed-meal system, which was previously used to feed shelter residents, resulted in significant amounts of uneaten food being discarded. By enabling families to choose their meals, the city sought to improve efficiency and respect individual dietary needs.
Looking Ahead
With the program’s expiration in January, Adams has signaled a broader pivot in the city’s approach to migrant services. Officials plan to prioritize competitive contracts to ensure transparency and cost-effectiveness while addressing the ongoing influx of asylum seekers.
New York City continues to face challenges in managing its migrant crisis, with the shelter system under strain and resources stretched thin. Although the prepaid debit card program aimed to provide a short-term solution, its abrupt end raises questions about how the city will navigate the complexities of long-term migrant support.
The decision to discontinue the program marks another chapter in the ongoing debate over New York’s response to the migrant crisis. As the city adapts its strategies, it must balance fiscal responsibility with the need to provide humane and effective services to those seeking refuge within its borders.
