THIS city in US to launch $53 mn pre-paid card program for migrants

Mayor Eric Adams' administration in New York City is set to roll out a $53 million pilot program, providing pre-paid credit cards to migrant families temporarily housed in city hotels, media reports said.

Run by Mobility Capital Finance (MoCaFi), the Immediate Response Card initiative is aimed to offer financial assistance to asylum seekers staying at the Roosevelt Hotel to purchase food and essential supplies.

According to City Hall, the program will commence with 500 migrant families, replacing the existing food service at the hotels, media reports said.

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The pre-paid cards, usable only at designated outlets such as bodegas, supermarkets, grocery stores, and convenience stores, require recipients to pledge their expenditure solely on food and baby supplies through a signed affidavit.

If not adhered to, the migrants will face expulsion from the program.

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The card values will fluctuate based on family size and income, potentially reaching nearly $1,000 per month for a family of four, providing $35 per day for food.

The cards will be refilled every 28 days.

MoCaFi CEO and founder Wole Coaxum expressed excitement about the partnership with NYC, stating, "MoCaFi's goal is to expand access to financial resources for individuals excluded from banking, such as asylum seekers, while helping the local economy."

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The success of the pilot program could lead to its expansion, potentially benefiting all 15,000 migrant families currently housed in hotels, according to city officials.

Kayla Mamelak, spokesperson for Mayor Adams, highlighted the anticipated cost savings, stating, "The pilot program is expected to save New York City more than $600,000 per month, or more than $7.2 million annually."

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This initiative comes in the wake of the city's efforts to address the challenges associated with providing meals to migrant families.

As the city grapples with an influx of asylum seekers, estimated to reach a total of 66,000, Mayor Adams is leading innovative approaches to address their needs. The program is expected to cost $10 billion through 2025.

(With inputs from agencies)