Second phase of Metro subsidy program to kick off in July after months-long delay

After technical difficulties caused months of delays, people participating in a Los Angeles County transportation subsidy experiment will receive their first payments by July, according to an email Metro sent to program participants.

“We are writing to let you know that we have decided to change the Mobility Wallet card provider to better serve you,” said the May 22 email to the 2,000 participants awaiting prepaid debit cards with the subsidy, which will total $1,800. “We anticipate cards will reach you on or before July 2025.”

Canada-based fintech company TruCash, the original vendor Metro contracted, and the bank TruCash was working with, had been having compliance issues resulting in unexpected delays in distributing and activating the prepaid debit cards.

Metro had hoped to distribute the cards by early 2025.

Keep up with LAist.

If you're enjoying this article, you'll love our daily newsletter, The LA Report. Each weekday, catch up on the 5 most pressing stories to start your morning in 3 minutes or less.

Subscribe

Metro said in a statement that the new vendor will ensure "a smooth and reliable rollout for participants." The agency did not name who the new vendor is.

Researchers have found that participants in the program’s first phase reported that their quality of life improved with the financial assistance.

What’s the program?

Metro and the Department of Transportation launched the Mobility Wallet pilot program in 2022.

The program is working toward the concept of universal basic mobility, which, broadly, is the idea that everyone should have access to some degree of mobility.

L.A. County’s program is the concept's largest experiment in the country, according to Metro. It offers lower-income people $1,800 to use on public transit, ride-sharing, bikes and other uses over the course of a year.

Participants were selected for the second phase of the program in the fall of last year.

The 12-month timeline for the program will be initiated once the cards are distributed, Metro said. The subsidy will be disbursed in $900 installments at the start of the program and at the six-month mark.

To account for the "delay from the previous banking partner," Metro said it will offer participants an extra $150. That additional amount will "likely be disbursed during the final month of the program."

Phase 1 increased access to basic needs

Teams of researchers from UCLA and UC Davis evaluated the results of Phase 1 of the Metro Mobility program, which involved 1,000 participants from South L.A.

According to interviews with 31 participants, researchers from UCLA found that the extra help to afford moving around the city resulted in financial relief, overall stress reduction and increased connection with family and friends.

“I would spend my days at home just because I didn’t want to stress my family out with a ride or stress myself out with asking or figuring it out,” a participant said about their feelings prior to participating in the program, according to a UCLA research brief. “I would stay home more often. And it definitely helped me lift myself up."

The findings from UCLA’s analysis “underscore the need for a permanent program with dedicated funding,” the researchers said in the brief.

Moving forward

Ryan McGranahan, a stand-up comic and storyteller from North Hollywood and Phase 2 participant, doesn’t have a car.

He mostly relies on the Metro B line and buses to get around the city. He said he’s hoping to use the Mobility Wallet funds to buy a “fixie with a flip-flop hub,” or a bike that can switch between fixed and multi-gear.

While he said he’s ultimately “mollified” by the latest update from Metro, McGranahan said he wished the agency had communicated better with participants.

“It’s hard to feel aggrieved by not getting a stipend or free money, but then when you’ve been made a lot of promises in relation to it…you do feel aggrieved,” McGranahan said. “I’ve been trying to tell myself, ‘Eventually I’m gonna get a bike out of this, and I’m gonna be really happy with a bike.’”