New York City has launched a controversial pilot program that provides homeless young adults with up to $15,800 in unrestricted cash, sparking debate over whether the approach is a bold solution or a risky use of taxpayer funds.
The initiative, called “Cash with Care,” offers 60 participants between the ages of 18 and 24 monthly payments of $1,200 for nine months, along with access to a one-time $5,000 lump sum.
The total potential payout per participant is $15,800, with no spending restrictions.
The $1.5 million program was approved by the New York City Council in December and is being implemented in partnership with Covenant House, the city’s largest provider of services for homeless youth.
Covenant House operates a modern, four-story facility equipped with a health and wellness center, classrooms, a professional-grade music studio, a clothing room stocked with donated apparel, and a full basketball court funded by the NBA and NBPA.
Supporters argue the cash assistance, paired with counseling and job training, could help shorten shelter stays and improve long-term stability.
Covenant House CEO Shakeema North-Albert admitted she was initially skeptical.
“You’re going to give kids this influx of cash and not give them any kind of guidance?” she recalled thinking.
But she said her view shifted as the program rolled out, noting that participants also receive financial coaching, education support, and mental health services.
Lyndell Pittman, the organization’s senior vice president of support services, said he, too, was unsure at first.
“I was not a believer,” Pittman said. “How are we going to protect them from themselves?”
Early data suggests many participants are spending cautiously.
According to Pittman, roughly 40 percent have “barely spent any money” in the first two months.
Some appear to be saving for rent, education, or future expenses rather than making large purchases.
One 20-year-old participant told the Daily Mail he has saved about 95 percent of his payments while working toward his GED and planning for college.
Another said the funds have helped cover subway fares, food, and photography equipment as he builds new skills.
Critics question whether the program will produce measurable results.
City Council member Frank Morano said youth homelessness is “a real and heartbreaking problem” but called for clear benchmarks, per the Daily Mail.
“New Yorkers deserve to know exactly what outcomes we are getting for that money,” he said.
A control group of 60 eligible youth who were not selected for the lottery-based pilot will be tracked alongside participants.
Researchers plan to measure housing stability, employment, debt reduction, and educational progress.
Proponents argue that the cost of keeping one young person in shelter for a year can approach $70,000 — far more than the program’s direct cash support.
In 2025, Covenant House served 1,256 young people.
Advocates say even modest reductions in shelter stays could offset program costs.
The debate reflects broader national discussions about guaranteed income experiments and whether unconditional cash assistance can break cycles of poverty.
As the pilot continues, city officials and researchers will monitor outcomes closely to determine whether the experiment becomes a model for expansion — or a cautionary tale.
