New York City is taking a fresh approach to tackling youth homelessness with a guaranteed income experiment that puts real money in people's pockets. The City Council has earmarked $1.5 million in its 2026 budget for a program called "Cash with Care," designed to help young people transition out of homelessness with financial stability and support.

How the Program Works

Here's the structure: 60 young New Yorkers between 18 and 24 who are currently living in homeless shelters or similar facilities will be selected to participate. Each person receives $1,200 per month for nine months, along with a one-time $5,000 payment they can access anytime during the first nine months of the year-long program. Add it all up, and participants get $15,800 total.

The program isn't just about handing out checks. According to the council report, the goal is to provide both consistent, flexible income and comprehensive services to help young people actually escape homelessness rather than just survive it.

The Broader Picture

"Cash with Care" is a joint effort between the City Council and Covenant House New York, a youth homeless shelter organization. It follows an earlier council initiative that provided similar support to expectant mothers experiencing homelessness.

The real test will be whether this model works well enough to spread. If NYC's experiment shows that direct cash payments combined with services can effectively address housing insecurity, other cities might follow suit. That could mark a meaningful shift in how municipalities approach homelessness nationwide, moving away from purely service-based models toward programs that combine financial support with wraparound assistance.