New York City has approved a new direct cash assistance initiative called “Cash with Care,” aimed at supporting homeless young adults. Funded through a $1.5 million allocation in the Fiscal Year 2026 budget, the pilot program will assist 60 participants aged 18 to 24 currently living in Covenant House New York shelters.
The plan is designed to provide a steady financial lifeline while also giving access to counseling, job readiness services, and long-term housing support. This is the first time the city has used municipal funds for a guaranteed income program focused on young people without permanent housing.
Guaranteed Payments without Conditions
Each individual enrolled in the “Cash with Care” program will receive $1,200 per month for nine consecutive months, in addition to a one-time $5,000 payment. According to a statement by the New York City Council, this money is distributed with no strings attached. Recipients are not required to justify their expenses or report their spending, and there are no caseworkers tasked with overseeing purchases.
“The premise is one of profound trust,” a policy advisor involved in the project told local media, emphasizing the goal of empowering recipients to make decisions independently. According to information from Covenant House New York, participants will be able to use the money for essentials like food, transportation, rent, or even to pay down debt.
The total per-person investment amounts to $15,800 over the course of the program. Though modest in scope, city officials see it as a significant shift from traditional welfare models that often involve layers of administrative oversight and restrictions. Council Speaker Adrienne Adams stated that guaranteed income initiatives such as this one can “open new pathways to self-sufficiency and stability,” particularly for youth navigating life without a permanent residence.
Broader Support Framework through Covenant House
In addition to financial assistance, participants will benefit from wraparound services provided by Covenant House New York. According to CHNY, these services include emotional support, education counseling, and employment readiness programs, which aim to create a stable base for young people to rebuild their lives.
This approach builds on lessons from a previous pilot initiative for expectant mothers, which was also backed by city officials. That program reportedly led to improved outcomes in maternal health and housing security, serving as a key influence in shaping “Cash with Care.” Council Member Crystal Hudson, who sponsored the legislation for both pilots, said the new program is “an important step to advance the health, safety, and well-being of all New Yorkers.”
The data collected throughout the program will be used to assess impact, with CHNY tracking how many participants gain permanent housing, improve their food security, and reduce or eliminate personal debt. While the scope is intentionally limited, city leaders suggest this model could inform future efforts to address urban homelessness more effectively. Though it remains to be seen how the outcomes will shape policy in the long term, “Cash with Care” reflects an evolving philosophy toward social support: providing trust-based financial aid, backed by community care, to those who need it most.
