New York City has announced it will end its program of providing food vouchers to migrants, a decision that concludes a controversial initiative frequently criticized by conservatives and other groups.
Under the pilot program, asylum seekers staying in hotels converted into shelters received preloaded Mastercards, providing about $350 per week for a family of four to cover groceries and baby supplies.
The city awarded a $53 million one-year “emergency” contract to New Jersey-based tech startup Mobility Capital Finance, bypassing the usual competitive bidding process, a decision that sparked significant backlash.
“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,” Mayor Eric Adams’s Office said in a statement.
The city launched the program in late March, following a contract signed two months prior. Since then, it has distributed $3.2 million in prepaid debit cards to around 2,600 migrant families to help cover food expenses.
The program aimed to reduce costs and food waste related to the city’s boxed meal delivery service, as much of the pre-packaged food was reportedly scrapped. By allowing migrants to choose their own groceries, it helped reduce waste.
Conservative commentators and some elected officials criticized the initiative, suggesting it was prone to waste, fraud, and abuse. However, City Hall spokesperson Fowler stated that no such issues emerged.
In fact, according to city officials, the debit cards can only be used at groceries, convenience stores and bodegas, and do not work at other businesses; families receiving assistance must sign affidavits committing to using the cards exclusively for their intended purpose, with violators facing the possibility of having their cards revoked.
The Adams administration awarded the emergency contract without competition to expedite the launch of the program; however, City Comptroller Brad Lander later revoked the city’s authority to issue similar contracts without competition for migrant services.
The Adams administration gave no explanation on Thursday for ending the program.
