NYC Council Voices Concerns Over Migrant Prepaid Debit Card Program

Some members of the New York City Council have expressed concerns this week regarding the city’s decision to provide prepaid debit cards to migrants, as reported by the New York Post.

The city granted a $53 million no-bid contract to Mobility Capital Finance, a tech finance startup, to distribute prepaid debit cards to recent arrivals. The Post revealed that the company could make nearly $2 million in profits if the pilot program expands in its second phase, as per the plan.

“I have never seen anything like this before,” stated Councilmember Gale Brewer, a Democrat from Manhattan, upon learning about the details of the plan. “I find it hard to believe they could not have negotiated a better price,” she added, referring to city hall’s decision to award the contract without a bidding process and assuring the council that all future contracts would go out for bidding.

Councilman Bob Holden, a Democrat from Queens, also voiced concerns about the deal on Thursday after reviewing the contract. “These no-bid emergency contracts and profit-driven bids are spiraling out of control, and we need to reassess how we conduct business as a city,” he remarked.

“With a profit margin of this size in addition to fees, it is essential to conduct due diligence,” former city Comptroller Scott Stringer told the newspaper. “The competitive request for proposals process is crucial in securing competitive contracts. It is simply the best practice,” he emphasized.