Nationwide — After a phone call with President-elect Donald Trump 48 hours after his victory, Mayor Eric Adams has reportedly decided to end a pilot program providing migrants in taxpayer-funded shelters with prepaid debit cards for groceries, which had sparked considerable debate. The initiative, launched in March through an emergency contract with New Jersey tech startup Mobility Capital Finance (MoCaFi), distributed $2.4 million in preloaded Mastercards to approximately 2,600 migrant families, according to City Hall officials.
MoCaFi’s $53 million emergency contract, first reported by The New York Post, faced criticism, including from rapper 50 Cent, as the selection process bypassed standard bidding procedures. Under the program, families received around $350 weekly on preloaded Mastercards for groceries and baby supplies, distributed at hotels repurposed as shelters.
Since spring, the number of migrants under city care has dropped to approximately 60,000. The pilot program’s total cost reached around $3.4 million, which included taxes and fees, while $2.4 million supported local grocery spending. Officials added that there were no reports of misuse or fraud related to the cards.
The program aimed to cut costs and reduce food waste from the city’s previous boxed-meal delivery system, which saw significant amounts of food discarded. By allowing migrants to select their own food, the city hoped to minimize waste and improve efficiency.
The Adams administration defended the no-bid contract as a necessary step to avoid delays in launching the program. However, City Comptroller Brad Lander has since revoked the city’s authority to issue similar emergency contracts for migrant services.
