NYC Council launches direct cash program for dozens of homeless families

Dozens of low-income New York City families will soon begin receiving regular cash payments through a new program funded by the City Council.

The initiative is run by the Bridge Project, an organization that will provide 161 pregnant New York City mothers who are homeless, at risk of homelessness or attempting to flee domestic violence with ongoing cash assistance over the next three years. The City Council passed a measure last year greenlighting the program before allocating $1.5 million to fund it in the current budget.

Program participants will receive a $2,500 stipend prior to giving birth, followed by $1,000 a month for the first 15 months of the program. They will then receive $500 a month for the final 21 months. They can use the money to cover any costs.

Councilmember Crystal Hudson, who sponsored the bill to allocate the funds, said the program will provide “a transformative lifeline, providing mothers the resources they need to provide their children with opportunities and support, free from the constraints of financial hardship.”

The Bridge Project was developed by the Monarch Foundation in 2021 to address child poverty in New York City. The organization began issuing direct cash assistance to families in New York City, Buffalo and Rochester that year.

It found 63% of past participants moved from shelters or unstable living situations into permanent housing within a nine-month period of program participation.

Bridge Project Executive Director Laura Clancy said the cash allows mothers to take control of their own finances, provide for their families at a pivotal developmental stage and help the city save money on shelter costs.

“Babies are healthier if they’re not living in a shelter, and moms are happier and less stressed,” Clancy said, citing research into the correlation between cash assistance and higher birth weights, developmental milestones and infant and maternal mortality.

The families selected for the program applied online earlier this fall. Clancy said the organization received more than 1,000 applications.

“The reason we decided to focus on women experiencing housing insecurity is because there are a lot,” she said.

More than 1,400 babies are born to mothers living in city homeless shelters each year, according to data cited by the Bridge Project. A 2020 report from the Coalition for the Homeless found that one out of every 100 New York City newborns moved from the hospital to a homeless shelter.

Councilmembers have previously proposed and approved other cash assistance programs for low-income New Yorkers, including a “microgrant” initiative that gives small sums to people attempting to flee domestic violence.

The Bridge Program is reminiscent of the universal basic income policy championed by former mayoral candidate Andrew Yang ahead of the 2021 election.

On the campaign trail, Mayor Eric Adams said he also supported making direct payments to low-income New Yorkers as a way to immediately address homelessness.

“I would really explore some version of the UBI — universal basic income — to get people over this very difficult time, particularly low-income New Yorkers,” he said during a December 2020 candidate forum organized by the group Housing Conservation Coordinators.

Six months later, however, Adams panned the very same proposal, calling it “Monopoly money” during a televised debate. He also labeled the proposal as “snake oil” and “UBLie” at a separate campaign event.