This pilot initiative gave preloaded Mastercards to asylum-seeking families housed in hotels converted into shelters. Families of four typically received around $350 each week to buy groceries and essential supplies for children.
The city awarded a $53 million, one-year “emergency” contract to the New Jersey-based tech company Mobility Capital Finance to manage the program. The contract, which bypassed the usual competitive bidding process, sparked criticism.
With the one-year contract set to expire soon, the Adams administration opted not to extend it, as reported by ABC7.
“As we move towards more competitive contracting for asylum seeker programs, we have chosen not to renew the emergency contract for this pilot program once the one-year term concludes,” the mayor’s office explained in a statement to the news outlet.
The program began in late March, following the contract’s signing in January. Since its launch, New York City has distributed $3.2 million in prepaid cards to approximately 2,600 migrant families to cover food expenses, according to ABC7.
The intent behind the program was to cut costs and reduce the food waste that had resulted from the city’s boxed-meal delivery system. Officials observed that much of the boxed food was going uneaten, and allowing migrants to buy their own food was seen as a way to minimize waste.
The Adams administration awarded the contract without bids to expedite the program’s implementation, which was projected to save money.
City Comptroller Brad Lander later revoked the city’s authority to issue similar no-bid contracts for migrant services.
The administration did not specify why it chose to end the program on Thursday.
{Matzav.com}
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