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Council rejects $600K resident gift-card plan; proponents push for direct grants to businesses
Summary
After hours of debate over equity and administrative costs, East Providence councilors voted 4–1 to reject a proposed $600,000 resident gift-card program (part of a $1.2M bridge-impact package), favoring direct grants to affected businesses and asking for clearer program details.
The East Providence City Council voted Sept. 3 to reject a proposed gift-card program intended as part of a $1.2 million package to aid residents and businesses affected by the Washington Bridge disruptions.
The package under discussion split the allocation: $600,000 to a resident-targeted gift-card distribution managed by a vendor (described as a multiplier to stimulate local spending) and $600,000 for direct grants to businesses. Administration staff and the vendor (Gifty) presented the proposed mechanics, expected redemption patterns and a program-management fee. The vendor said the base card and mailing material costs plus program-management fees would total about $477,976 for roughly 8,710 cards and that an optional secondary mailing would cost extra.
Council members voiced several concerns: the plan targets low-to-moderate income census tracts (not every impacted resident), potential redemptions at large retailers rather than small businesses, administrative fees and whether the program would reach the neighborhoods most affected by transit disruptions. Vice President Frank Rioo and other councillors pressed for clarity on business eligibility and whether Stop & Shop or similar stores could be excluded. Several members called for a direct-grant approach that would deliver funds straight to impacted local businesses.
“Those funds should be focused on the businesses that lost revenue,” Councilman Lawson said in moving to reject the vendor-administered gift-card plan; the motion carried 4–1 on a roll call.
Administration officials said the city has coordinated with Rhode Island Commerce and the city of Providence on the program and that any unused gift-card balances would be returned to the city and redirected into the direct-grant pool. Vendor representatives described estimated activation and mailing costs, a 60-day redemption window and fraud-protection measures managed by the vendor.
Council asked the administration to return with a clearer plan for direct grants to businesses, including eligibility criteria and a transparent application process.
