And in the deal announced earlier this month after media outlets learned of it — has been plagued by problems from the start. The NJ-based company set to lead the program is set to net millions in taxpayer funds but the problem only begins there.
The Lowdown
New York City’s intended $53m debit card program to allow illegal migrants to live comfortably in the boroughs is backfiring. Weeks after the deal was revealed more crucial information is finding its way to the public.
The cards are believed to have some $345 for a single person with $2,203 for a family of 8 on them with the cards expected to be refilled every 28 days.
Mobility Capital Finance is set to lead the program with hefty sums being returned to its coffers. Annually, the company will collect a $250,000 management fee off of the backs of taxpayers. Additionally, the company will collect 3% of the first $50m of taxpayer funds for itself in the operation.
City council members are calling foul.
If the program gets extended to more families (as expected) the company will collect a further 2.5% of the monies with an additional 2% at anything over $150m.
Astonishingly, the company is also set to collect a $125,000 start-up fee to kick the program off.