"As we move towards more competitive contracting for asylum seeker programs, we have chosen not to renew the emergency contract for this pilot program once the one-year term concludes," Mayor Eric Adams's Office said in a statement.
The pilot program distributed debit cards to migrant families staying in city-funded hotels, allowing them to buy their own food.
While the program was characterized by some as an additional expense, it was initially conceived as a way to save money by no longer buying food the asylum seekers did not want to eat. The city estimates it cost half as much as the boxed-meal delivery service it replaced.
Since late March, the city has provided prepaid debit cards totaling $3.2 million to some 2,600 migrant families living in hotels so that they can buy food and baby supplies.
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The cards, distributed at the city's intake center at the Roosevelt Hotel, give a family of four about $350 per week to go shopping at local stores for food and baby supplies.
The financial technology company Mobility Capital Finance, or MoCaFi, was hired last year under a no-bid, emergency contract to run the program for a one-year term. It receives about $400,000 under the agreement.
The mayor did not give a specific reason for ending the program.
The city's ability to enter emergency deals for migrant services has since been revoked by City Comptroller Brad Lander.
The city estimates 700 asylum seekers are entering each week, while 1,000 are leaving during the same period.
This story will be updated as more information becomes available.
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