Controversial No-Bid Contract Signed By NYC Will Provide Prepaid Debit Cards To Asylum Seekers

The no-bid contract signed by NYC will provide prepaid debit cards to those who seek shelter.

Some City Council members were concerned about the newly signed no-bid contract. (Photo: POLITICO Pro)

A Controversial No-Bid Contract

New York City recently signed a controversial $53 million no-bid contract with a New Jersey start-up company, MoCaFi. The newly signed no-bid contract will provide prepaid debit cards to asylum seekers.

MoCaFi, the company that signed a no-bid contract with NYC, stands to make $1.8 million in profits by taking a cut of the taxpayer funds loaded onto the cards. Some City Council members are concerned about the lack of competitive bidding for the no-bid contract.

The said company which NYC signed a no-bid contract will also receive a start-up fee, management fee, and additional profits based on the amount of funds disbursed. The Adams administration defended the emergency no-bid contract by stating it would take too long to go through the bidding process.

According to a published article by SmartNews, the program involved in the no-bid contract aims to provide financial assistance to asylum-seeker families in temporary shelters. If the program expands, MoCaFi which is related to the controversial no-bid contract could make even more in fees.

New Yorkers Living In Poverty

In a published article by the New York Post, a study by Columbia University and Robin Hood revealed that in 2022, one in four children in New York City lived in poverty.

The study also showed that over half of adult New Yorkers had incomes below the poverty line, leading to difficulties paying for housing, energy, and food.

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