NEW YORK, NY — In a direct move to combat the city’s escalating housing crisis, the New York City Council has officially greenlit the “Cash with Care” program. The initiative, which launched its pilot phase in late 2025, aims to provide a financial safety net for young adults transitioning out of homelessness.
The program arrives at a critical juncture for Mayor Zohran Mamdani’s administration, which has faced intense scrutiny following the deaths of at least 17 individuals during a recent record-breaking snowstorm and “lethal” sub-zero temperatures.
1. Payment Breakdown: Monthly and Lump Sum
The program is designed to provide both immediate stability and long-term planning resources.
- Monthly Stipend: Enrolled participants receive $1,200 per month for a duration of nine months.
- Lump Sum Payment: A one-time $5,000 stimulus check is provided, which can be accessed at any point during the first nine months of the 12-month program.
- Total Support: Each individual in the pilot is eligible for a total of $15,800 in direct cash assistance.
2. Eligibility and Selection Process
Unlike traditional social services, “Cash with Care” has no public application portal. Participants are selected automatically based on existing records from Covenant House New York (CHNY).
Core Requirements:
- Age: Must be between 18 and 24 years old.
- Residency: Must currently reside in a CHNY shelter or one of their transitional residential programs in NYC.
- Status: Must be experiencing documented homelessness or severe housing insecurity.
- Cohort Size: The initial pilot is limited to 60 individuals to allow for a robust study by Chapin Hall on the program’s long-term effectiveness.
3. Timeline: When Will the Checks Arrive?
Payments for the 2026 fiscal year cohort are expected to begin processing in February 2026.
- Notification: Selected individuals will be contacted directly by CHNY staff.
- Automatic Delivery: Once enrolled, payments are issued automatically via direct deposit or pre-paid debit cards to ensure those without traditional bank accounts can access funds.
4. Political Context: A City Under Pressure
The rollout of “Cash with Care” is being closely watched as Mayor Mamdani grapples with a homeless population estimated at over 158,000.
- The Winter Crisis: Following 17 cold-related deaths this month, the administration has been forced to open 62 emergency warming centers and use public school buildings as temporary shelters.
- The Legislative Goal: Speaker Adrienne Adams highlighted that the program follows a successful pilot for expectant mothers, aiming to prove that “no-strings-attached” cash is the fastest way to move people into permanent housing.