Opportunity NYC
| Company type | Nonprofit program |
|---|---|
| Industry | Social welfare, Conditional cash transfer |
| Founded | April 2007 |
| Founder | Michael Bloomberg |
| Defunct | August 31, 2010 |
| Fate | Program concluded |
| Headquarters | New York City , United States |
Area served | New York City |
| Owner | New York City government, various private foundations |
Opportunity NYC represented a pioneering conditional cash transfer (CCT) initiative introduced by New York City Mayor Michael Bloomberg in April 2007. As the inaugural CCT program in the United States, it received initial funding from private entities such as the Rockefeller Foundation, Robin Hood Foundation, the Open Society Institute, Starr Foundation, AIG, alongside Bloomberg’s own Bloomberg Family Foundation. The nonprofit research organization MDRC conducted an evaluation employing a randomized assignment methodology, while the nonprofit community development group Seedco managed its implementation. The program concluded operations on August 31, 2010.
Background
Opportunity NYC drew inspiration from internationally successful CCT frameworks like Brazil’s Bolsa Família and Mexico’s Oportunidades, which have demonstrated effectiveness in reducing poverty by linking monetary incentives to social objectives. The main purpose of Opportunity NYC Family Rewards was to measure how financial rewards influenced children’s schooling, family health, and adult employment engagement. Cash transfers, generally allocated to mothers or female household heads, ranged between $40 and $100 per month contingent on fulfilling obligations such as school attendance and medical appointments.
The initiative consisted of three key areas: education, health, and employment. The education segment granted rewards including $50 monthly for maintaining at least 95% high school attendance, $600 for each passed Regents exam, and $25 for attending parent-teacher meetings. The health portion offered $200 for each non-emergency doctor visit per family member and $200 for completing pediatric Early Intervention assessments. The work component provided $300 for working 30 hours weekly over a two-month period or between $300 and $600 for finishing educational or vocational training programs.
According to the World Bank, CCT programs deliver direct financial assistance to impoverished families conditional on social criteria—offering immediate support while encouraging long-term investments in human capital. Advocates highlight the program’s contribution to enhancing child health, educational success, and future economic productivity, whereas critics point to its role in stabilizing vulnerable households and improving access to social services.
Results of Opportunity NYC
The evaluation by MDRC revealed that during the first two years, Opportunity NYC significantly impacted poverty alleviation by reducing extreme poverty rates among participating families from 30% down to 17%, alongside increased parental ownership of bank accounts. Educational improvements were most evident among high school students, with a 6% rise in those passing at least two Regents exams and a 15% increase in students achieving 95% or higher attendance rates. Health outcomes showed modest progress, notably a 10% boost in preventive dental care visits. Employment-related results indicated slight positive changes, including a 2-3% greater probability of parents obtaining training certifications or associate degrees.
See also
Further reading
- Bolsa Família: Changing the Lives of Millions in Brazil. The World Bank, Aug. 22 2007
- GARFINKEL, Irwin. Reducing insecurity: The principal objective of income transfers ? University of Wisconsin-Madison
- Opportunity NYC homepage
- MDRC's description of the research design for the Opportunity NYC evaluation
- McMAHON, Colin. NYC program will try to buy good parenting. Chicago: Chicago Tribune, 27 May 2007
- Do the right things - Article from the Financial Times