A New Approach to Youth Homelessness

New York City is trying something different in its fight against homelessness. The City Council has set aside $1.5 million in its 2026 budget for a guaranteed income pilot program called "Cash with Care," which will give young homeless residents substantial cash payments with essentially no strings attached.

Here's how the math works: 60 young New Yorkers between 18 and 24 who are currently living in homeless shelters will receive $1,200 every month for nine months. That's $10,800 right there. Add in a one-time $5,000 payment they can access anytime during the first nine months of the year-long program, and you're looking at $15,800 per person.

The Thinking Behind Direct Cash

The program is a partnership between the City Council and Covenant House New York, a youth homeless shelter organization. According to the council report, the goal is to support young people transitioning out of homelessness by providing flexible income alongside comprehensive services. The idea is that cash gives people the freedom to address their most pressing needs, whether that's securing housing, transportation, or other essentials.

This isn't NYC's first rodeo with guaranteed income programs. The council previously launched a similar initiative targeting expectant mothers experiencing homelessness, suggesting these pilots are part of a broader strategy to test whether direct cash payments can actually move the needle on housing insecurity.

Why This Matters

If "Cash with Care" works, it could reshape how cities think about addressing homelessness. Instead of dictating how assistance gets spent through traditional programs, guaranteed income puts financial power directly in the hands of people who need it most. The results from this pilot could influence whether other cities adopt similar approaches, potentially contributing to a nationwide shift in how we tackle housing insecurity and homelessness.