New York City Hall has announced the termination of its prepaid debit card program for migrants.
The program, in place since March, provided debit cards to migrants in city-funded hotels to help cover basic needs but was heavily criticized by conservatives and has been scrapped by New York City officials just two days after Republican Donald Trump was confirmed as president-elect.
The initiative was launched as a temporary support mechanism, part of a one-year pilot program, to help migrants by providing them with limited financial assistance for essentials like food and baby clothing.
So far, more than $3 million has been spent on the program, helping almost 3,000 migrant families living in hotels with limited resources to buy essential supplies. The cards provided about $350 for a family of four.
As the city scales back this direct support, officials say they are exploring alternative ways to assist migrants, though no specific plans have been confirmed.
In a statement emailed to Newsweek on Friday, a New York City Hall spokesperson said: "Through the immediate response cards pilot program, we were able to reduce food waste, redirect millions of dollars to our local economy, and provide more culturally relevant food to more than 2,600 migrant families in our care.
"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.
"For over two years, we have provided care to more than 222,000 migrants while saving $2 billion in asylum seeker-related costs. Thanks to our resettlement efforts, intensive case management, and national-leading Asylum Application Help Center, more than 160,000 migrants have left our shelter system and taken their next steps towards self-sufficiency.
"We will continue to implement and learn from innovative pilot programs like the immediate response cards program as we care for hundreds of new arrivals every week."
The program replaced a boxed-meal delivery service, which is reported to have cost twice as much as the debit-card program, as reported by ABC News. The debit card initiative was also credited with being a way to save money by not providing migrants with food items they would not eat and instead giving them autonomy to choose their products.
Financial tech company Mobility Capital Finance, or MoCaFi, was hired to run the program for a one-year term and receives about $400,000 under the agreement, ABC News reported.
In an emailed statement to Newsweek on Friday, CEO and founder Wole Coaxum said: "MoCaFi is pleased to partner with the City to deliver emergency response efforts for communities in need while streamlining processes for asylum seekers with children.
"Our platform enabled families to access fresh food of their choice from grocery stores, convenience stores, supermarkets, and bodegas. Since the beginning of the year, more than 2,600 families have benefited from our services, while spending several million dollars in the local economy.
"This work aligns with our company's mission to ensure efficient use of tax-payer dollars."
The decision is expected to receive mixed responses from local advocates, community leaders and migrant aid groups. Partnerships with local nonprofits and community organizations could provide more targeted aid.
Newsweek contacted migrant support groups in New York City for comment via email on Friday.
New York, as a sanctuary city, has historically embraced policies that aim to protect and support immigrants. However, the scale and speed of recent arrivals have created pressure to find sustainable solutions, with about 700 asylum seekers entering the city each week.
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