According to the New York Post, the Adams administration has initiated its program to distribute prepaid debit cards to migrants in New York City this week, following a controversial $53 million no-bid contract signed two months ago.

Staff members from Mobility Capital Finance, a New Jersey-based company, distributed eight preloaded Mastercards at the Roosevelt Hotel on Monday as part of a pilot program. The program is set to expand to 115 cards by the following week, as confirmed by a spokesperson from City Hall.

The one-year contract drew criticism after The Post initially reported that it was awarded without undergoing the usual bidding process.

The deal has the potential to greatly benefit the tech start-up, allowing it to earn an estimated $1.8 million by receiving a percentage of the funds loaded onto each Mastercard, as outlined in the contract.

However, the administration has revised the original plan, which initially intended to load the cards with a month’s worth of funds for food and baby supplies. Instead, cash will now need to be replenished on a weekly basis.

As per the spokesperson, a family consisting of two parents and children under five years old will receive approximately $350 per week.

The pilot program aims to cover around 460 out of the 64,500 migrants under the city’s care, with City Hall monitoring its effectiveness closely.

(YWN World Headquarters – NYC)