Increase in Debit Card Spending by City’s Migrants Benefits Vendors

Last June, I reported that City Hall had recently loaded over $1.1 million in taxpayer money onto migrant cash-debit cards after months of inactivity.

Shortly after, the Adams administration confirmed that Gotham taxpayers would spend $2.6 million by the end of the year to include 7,300 families in the existing program, which had assisted about 900 families since March.

While the city deems the “pilot” successful, no data has been released to support that claim.

Although providing migrants with cash cards instead of direct aid for essential needs might be a good idea, the approach taken by Adams is questionable.

Earlier this year, the city signed a no-bid deal with MoCaFi, a company co-founded by an Adams supporter, to distribute over $150 million to migrants staying at city hotels. It took three months to begin distributing the debit cards.

From late March, the program started with 115 families receiving $350 per week for six weeks. The pilot grew to include 900 families, with around $850,000 in costs incurred but only $648,000 going to the migrants.

Furthermore, nearly $211,000 was paid or owed in fees to MoCaFi, raising concerns about the hefty fees being charged.

The city claims the program has saved around $600,000 compared to delivering boxed meals, but the comparison may not be entirely accurate.

Now, as the city enters the second half of the contract with MoCaFi, questions linger about the longer-term plan and potential for fraud.

The city officials assert the program’s success and are considering extending it to the next year, despite the opportunity to explore more cost-effective alternatives through competitive bidding.

Nicole Gelinas is a contributing editor to the Manhattan Institute’s City Journal.