New figures released by New York City Hall have put a cost on the price of the current migrant crisis. Interested in finding out how much it’s costing taxpayers? Read on to find out.
The Cost of Welcoming
According to figures from City Hall, obtained by The NY Post, New York City taxpayers are paying out $10 million a day to support migrants, with each migrant household costing $387 per day individually for housing and food.
Mayor’s Mission
Mayor Eric Adams has aimed to cut these costs, which has resulted in a decrease in the migrant population in city-funded shelters since October—a drop of at least 600.
Financial Strain
Despite efforts to reduce spending, the city is still grappling with a significant financial burden due to the migrant crisis.
Downward Trend
The average daily expenditure of $387 per migrant household has gradually decreased since October 2023, indicating a downward trend in spending.
However, with an estimated 26,100 migrant households in city shelters, the total daily expense exceeds $10.12 million.
NYC Braces for Over $10 Billion Cost in a Year
The current migrant crisis is forecast to cost the city over $10 billion within the next year, a figure that has prompted an outcry from all angles.
Billions in Savings
Adams’ team has been working hard to save taxpayer dollars, most recently laying out plans that City Hall claims will save over $2 billion by summer.
Alleviating Taxpayer Burden
A spokesperson for City Hall told The NY Post, “Mayor Adams has laid out plans to save billions of taxpayer dollars as New York City manages a national humanitarian crisis, and the numbers show that our efforts are working.”
Immigration Impact
A government report in January refuted claims that immigration was the leading factor behind issues plaguing the city.
The report states, “While New York City is seeing an unprecedented number of asylum seekers relying on the City’s shelter system, the U.S. and New York City have seen periods of comparable or greater growth in our immigrant population in the past.”
Immigration Not Primary Cause of City’s Challenges
According to the report, “The immigrant population in the U.S. has only risen marginally since 2021.”
The report cites data showing that immigration in America has actually increased at a rate lower than the government had projected.
Contrary Claims
Despite immigration being such a hot-button issue, the report states that in the period between 2012 and 2022, immigration numbers grew slower than at any point in the last 50 years.
Historical Context
The report goes on to state that “New York City is the greatest immigrant city the world has ever seen” and that it “has a rich history of welcoming immigrants and was once the epicenter of mass migration to the U.S.”
Mayor Adams Under Fire for Alleged Waste
Despite all this, Mayor Adams has faced criticism for allegedly wasting millions of dollars in taxpayer money on no-bid contracts for emergency shelters – essentially paying emergency contractors as much as 237% more to build shelters than previous costs.
Mayor Faces Backlash Over No-Bid Contracts
These costs were, in a sense, self-regulated through a competitive bidding process that drove prices down.
City Comptroller Brad Lander highlighted the exorbitant rates paid to for-profit companies managing these shelters in a review of migrant-related contracts in late February.
City Hall Seeks Solutions to Reduce Shelter Expenses
According to a City Hall spokesperson, as these emergency contracts expire, City Hall is looking for ways to reduce costs – potentially by utilizing a bidding process or other means.
They added, “We will review the full report and address any issues that need to be rectified.”
Budget Cuts Averted
Mayor Adams previously announced a 20% reduction in costs related to the migrant crisis over three years, averting further budget cuts that would impact essential services like garbage pickup, support for older adults, and libraries.
Adams Ensures City Won’t Face Draconian Cuts
Adams promised stability, stating, “We’re not going to have to do those third rounds, that third round of cuts to our agencies. You’re not going to see some of those draconian steps that we were going to have to take that will get in the way of the cleanliness and the safety of our city.”
Controversial Initiative
A new scheme being trialed in New York City has caused waves in more conservative circles.
Cash Assistance
Under the “Immediate Response Card initiative,” new migrants to the city will be given debit cards preloaded with cash to purchase food and supplies, freeing up shelter services and enabling migrants to have more stability.
Spending Allowances
Under this initiative, individuals and families would receive around $13 a day, and monthly spending allowances could range from $345 for a single migrant to $2,203 for a family of eight.
This money can be spent at local grocery stores and supermarkets.
Critics Speak Out
Opponents have attacked the proposed scheme, criticizing the plan to give money to migrants when Americans are struggling with the cost of living crisis.
The post Support for Migrants Costing NYC Taxpayers $10 Million Every Day first appeared on Liberty & Wealth.
Featured Image Credit: Shutterstock / Lomb.
The content of this article is for informational purposes only and does not constitute or replace professional financial advice.
