The
pilot program provides 60 homeless youths aged 18 to 24 with $1,200 a month for
nine months, plus access to a one-time $5,000 lump sum - a total of up
to $15,800 per person, no strings attached and with zero spending
restrictions.
The $1.5 million program, approved by the
City Council in December, immediately raised eyebrows, prompting
skepticism not only from taxpayers and City Hall critics, but also from
leaders at the facility where the recipients live.
Covenant
House is the city’s largest provider of services for homeless youth,
and its four-story, state-of-the-art building includes a high-end
recording studio, an NBA-funded basketball court and a walk-in closet
stocked with free clothes.
Many of the young people staying there have escaped dangerous home environments, family rejection and sex trafficking.
City
council member Frank Morano told the Daily Mail that while youth
homelessness was ‘a real and heartbreaking problem,’ he was skeptical of
the handouts and questioned whether unrestricted cash was the answer.
‘New
Yorkers deserve to know exactly what outcomes we are getting for that
money,’ Morano said, pointing to housing stability, education, and
long-term independence as ways to measure success.
The closet is full of donated items so the youths can pick a new outfit for free
Taxpayers agreed, in a Reddit thread last month, they expressed their concerns with one writing: 'I’d like to keep my tax money on useful things instead, thanks!
'I
would say taxes are for roads and public works and national defense.
This is something you can privately opt into if you believe in [it] or
opt out of if you don’t. You think it’s useful you should feel free to
support it - I am skeptical of its utility so I prefer to stay out of it
and direct my philanthropy elsewhere.'
Another added: 'Guaranteed Income Program is a social construct. It may or may not work.
'You
can argue that having a guaranteed income will make people unmotivated
to work and others who have to struggle, see their hard-earned money
going to the lazy.'
Speaking to the
Daily Mail during an exclusive tour of the facility, the Covenant House
New York CEO admitted she was not immediately convinced when the free
cash was first floated but has since changed her mind.
'"You're
going to give kids this influx of cash and not give them any kind of
guidance?"' Shakeema North-Albert recalled thinking, as she worried
about how young people with limited financial experience would manage
the handouts.
She said similar programs
in other parts of the country had raised concerns after some
participants spent impulsively or diverted funds to family and friends
before stabilizing their own housing.
But
what ultimately shifted her view was that the initiative gives young
people support alongside the cash, from financial coaching and education
support to mental health services, in the hope it will help them secure
more permanent housing sooner, build food security and clear debt.
Covenant House New York chief
executive Shakeema North-Albert said she was initially skeptical of
giving young people unrestricted cash
North-Albert speaking with Daily Mail reporter Alexa Cimino this week
Lyndell
Pittman, Covenant House's senior vice president of support services,
said his initial reaction to the proposal was even blunter.
'When
we first got this, I was not a believer,' Pittman told the Daily Mail.
'I was like, "This doesn't make sense. We're just gonna give these kids
this money, and how are we going to protect them from themselves?"'
Pittman was most concerned that the free funds did not 'cause any harm.'
Both
leaders said that as the program unfolded, their views shifted, with
early indications that participants were spending cautiously and, in
some cases, barely touching the money at all.
Although
the payments have only been rolled out for the past two months, Pittman
said roughly 40 percent of participants had 'barely spent any money
since the start' - a detail that challenged assumptions that young
people would quickly blow through the funds. He said the behavior could
reflect either smart saving or fear.
'Because
they’ve never had this type of money, there’s a fear in spending it,'
he said, comparing it to the shock of being 'trusted' with a first
credit card.
North-Albert believes
that, in the long term, this will be a cost-saving measure. She noted
that keeping a young person in shelter for a year can cost the city
roughly $70,000, compared with $15,800 in direct cash support under Cash
with Care, arguing that even modest reductions in shelter stays could
significantly shift the financial equation.
The
Daily Mail spoke to young people enrolled in the program, whose
identities are kept anonymous, about how they were using the cash.
Pam Sandonato, who works in communications at Covenant House, gave the Daily Mail a tour
Lyndell Pittman, Covenant
House’s senior vice-president of support services, admitted he was ‘not a
believer’ at first, raising concerns about what harm the free money
could cause
A 20-year-old musician said that before he received his first payment, he had no income, but now he was juggling jobs and working toward his GED. He talked about his future with striking certainty.
'I'm planning on going to Juilliard soon,' he said - not if, but when.
The
pianist, who also plays viola and clarinet, sings, raps, performs at
events, and teaches lessons, said the monthly payments allowed him to
invest directly in his craft, covering music supplies and one-on-one
training.
'I've saved most of it - a
good 95 percent,' he said, explaining that he is setting the money aside
for college and future expenses.
Above all else, the cash has afforded him time to plan and get work rather than scrambling to survive.
Another participant, 20, is learning what it means to manage money for the first time - and how to invest in himself.
He
has been using the payments to experiment with photography, shooting on
his iPhone and teaching himself to edit using built-in apps. It is a
starting point, but one that is already helping him build skills and
confidence.
He described the income as both practical support and a lesson in responsibility.
A job board lists employment training opportunities for Covenant House youth
Covenant
House served 1,256 young people in 2025, offering them support to find
their own housing and become financially independent
'It
feels good, but I know that it's supposed to teach me about financial
responsibilities, on how to save money, how to budget with money,' he
said. 'I know I can't be reckless and spend all of it.'
The
money helps cover food outside the shelter, transportation, monthly
bills, his phone plan, extra storage for his photos - and the occasional
treat.
'It's good to treat yourself, but… don't overly spend,' he said. 'There has to be a limit.'
A 19-year-old
man who had landed at Covenant House in June with no plan beyond
finding somewhere safe to sleep had just moved into a Brooklyn apartment
with another facility resident when he started getting the monthly
payments.
The money is now helping pay for the basics, such as the $3 subway fare, which he no longer has to worry about affording.
However,
he did make one small spontaneous purchase as a treat - a pack of
Pokemon cards, but he is hoping they are an investment and he may later
trade them at a higher price.
Nearly
154,000 young people experienced homelessness in New York City between
2024 and last year, according to the Citizens' Committee for Children of
New York.
North-Albert said organizers
opted for a lottery to choose who would take part in the pilot, 'for
the sake of fairness and equity,' noting that participants still had to
meet eligibility requirements.
One the first floor of the facility is a space dedicated to art and creative pursuits
A salaried worker serving food to the youth in the kitchen at the home
The computer room at Covenant House ensures youths have access to workstations to be able to apply for jobs
The first floor houses the welcome center and a health and wellness center
Daily Mail Reporter Alexa Cimino received an exclusive tour of Covenant House
The
random selection has also allowed Chapin Hall to create a control group
of 60 Covenant House youth who qualified but were not chosen.
Researchers
will track housing stability, food security, debt, employment, and
education, comparing outcomes between those who received payments and
those who did not.
Covenant House is a
state‑of‑the‑art hub, with each floor dedicated to a different part of a
young person’s journey to securing their own home.
Thanks
to major corporate donors - including Cisco, Madison Square Garden’s
Garden of Dreams Foundation, and Take‑Two Interactive CEO Strauss
Zelnick - the new facility looks nothing like a traditional homeless
shelter.
Over four floors, there is a
health and wellness center, the CovCafe, a space for art and hands‑on
creative work, a computer room, mental health services, and classrooms
such as the Discovery Center to support career and educational
development.
Below ground, the
sub‑cellar features the CovDome gym, where the NBA and NBPA funded a
full basketball court, along with Covenant's clothing room, which looks
like a huge closet and gives out free clothes, and a professional‑grade
music studio.
Covenant House served 1,256 young people last year.
