This afternoon, Governor Hochul convened a cabinet meeting to discuss the cuts imposed by the federal budget – “The Big Beautiful Bill” (BBB) – and direct state agency heads to prepare strategies to minimize the long-term damage to New York’s programs. Please find below a summary of the briefing including media questions answered by state leaders. Please find the related press release attached for more details and we will continue to keep you updated.
Devastating Impacts of the “Big Ugly Bill”:
There are still many unknowns, however we cannot mask the consequences as these cuts will destabilize our health insurance programs and broadly impact all individuals, not just those on Medicaid. Rural parts of the state will be particularly impacted if hospitals are forced to close: for example, there are only 5 hospitals in the North Country. Specifically, 1.5 million New Yorkers will lose health insurance, uncompensated care costs to hospitals and providers are estimated to increase to more than $ billion annually, and 3 million will have their food benefits jeopardized. This will also hurt farmers as people use their benefits to purchase food at farmers’ markets and other retailers.
The Governor stressed that this intentional infliction of pain on New Yorkers and the most vulnerable across the country will put lives at risk as hospitals face higher costs and greater pressure. She also emphasized that the most cynical part is that they postponed some of the pain until later, hoping New Yorkers will forget about what they have unleashed on their own districts when it comes election time next year. But she will not let people forget – she vowed that New Yorkers will know who voted yes for this bill. The 7 New York Republicans who voted against their districts knew the devastation that this would cause.
New York is looking at a $750 million hit in the fourth quarter of this year and a staggering $3 billion hit next year. She has directed her agencies to identify creative strategies to limit long-term damage to vital programs. Additionally, during this year’s budget process they anticipated that something would happen, so they stopped $400 million in spending that was anticipated. Further, the one-time $3 billion inflation rebate is now a $2 billion inflation rebate. She reiterated that things are still uncertain because we don’t have the full picture, but New York is prepared. She cares about families and she will make every New Yorker her priority.
Questions from the media –
- The biggest hit that New York will take is from providing healthcare for undocumented people. Is the Governor considering legislative action to change the State’s policy and stop covering those services?
- They’re having discussions internally with legislative leaders, but at this time they are not giving any definite answers.
- New York State Budget Director Blake Washington emphasized that many of these individuals are green card holders that have been here for longer than 5 years. It would cost $3 billion to continue to provide them.
- What impact are the ongoing ICE deportations having on farmers and the industry overall impact? Are farmers concerned?
- Farmers are shocked and betrayed, especially because many of them voted Republican. They are not in support of these people being ripped out of the country.
- The terror of unidentified people with guns is palpable and the Governor noted that it’s ironic that some ICE agents are immigrants themselves.
- Richard Ball, New York State Commissioner of Agriculture, shared that there is grave uncertainty over who will take care of crops and manage farms. He also noted that the guest worker program for agricultural jobs has been having issues for decades and farms have already been under immense pressure.
- Many farm workers are disappearing or not showing up to work, they are afraid to go to work, church, the grocery store, etc.
- Is there anything that the State can do to buoy North Country hospitals in danger of closing?
- The Governor stated that before anyone asks her, people should ask members of Congress who represent those areas what they are going to do about it.
- Talks about managing this issue are ongoing among the many other problems New York will face, but no she emphasized that no state can compensate for these cuts and no concrete decisions have been made yet.
- New York State Department of Health Commissioner Dr. James McDonald stated that to help hospitals lower costs, we should look at scope of practice of health care providers as they proposed in this year’s budget:
- Other states have medication aides in nursing homes, he needs the Legislature to help with that
- Other states don’t have nursing shortages like New York, we are doing a lot to get more people interested in health care but we need to figure out a solution
- For example, medical assistants should be able to give vaccines, they are able to everywhere else.
- He needs the Legislature to work and partner with them on this. Highly trained individuals should be allowed to take on more tasks
- In the “Big Beautiful Bill,” they expect states to charge people with incomes between 100% and 138% of the federal poverty level higher co-pays up to $35. These people simply can’t afford this.
- The Governor noted that scope of practice is an enormous source of frustration for her that they can’t get the Legislature and the Department of Education to sign onto what other states are doing. Highly trained individuals should be allowed to take on more tasks. There’s no reason why New York shouldn’t lean on all the ways we can support healthcare. They will be taking this on once again.
- What have they been doing to prepare for the work/volunteer requirements for Medicaid and SNAP benefits?
- The New York State Director of Operations and Infrastructure Kathryn Garcia shared that the first issue they are tackling is the creation of the computer system and program to work across all of those. This will cost New York.
- Also, what are work requirements or volunteering? What is acceptable to the federal government when they do the submissions to the federal government? These are questions they still have to find answers to.
- Garcia stressed that they are going to do lots of outreach to prevent people from having difficulties, but people will likely struggle to continuously recertify every 6 months and have all of the documentation they need to meet these requirements. There wouldn’t be savings attached to these requirements if they didn’t assume people would drop out.
- Do agencies need to find efficiencies and cut costs?
- Department heads know what they need to do, they told the MTA to find $300 million in efficiencies to fund their capital plan.
- They want to ensure collaboration is ongoing between agencies, they cannot act in silos.
- How will the Governor ensure people know what Republicans have done?
- She shared that she’ll be on the road for the next few months telling people what New York is doing and reminding people of the harm being inflicted by Republicans.
- She’ll be with Congressman Ryan tomorrow in Kingston, he’ll be telling his district what he is fighting for.
- She shared that she’ll be on the road for the next few months telling people what New York is doing and reminding people of the harm being inflicted by Republicans.
- Yesterday the Governor reassured business leaders yesterday that nothing will happen in New York City without her approval, why did she share this and should we believe her?
- She stressed that she stated this to make sure people in New York City know that she is equally concerned about them and she also wants to ensure collaboration.
- She is looking forward to working with the next mayor and has been very intentional in governing differently than her predecessors to work with the mayor.
- Are agencies being asked for specific numbers in savings?
- They are not, but agencies are very capable and can find them.
- The cuts won’t start until April of 2026 so they are continuing to consider and test options.
- What about the Epstein controversy – should Democrats press on this?
- This isn’t the driving issue going into Congressional elections because sadly there are so many opportunities to show the harm Republicans are doing
- Epstein files show that there is a trust gap, but she does not plan to run on this
- What is her relationship like with President Trump?
- She has been very candid with him about the many impacts of this bill, especially the $13.5 billion in Medicaid cuts. They are cordial and she wants to make sure she is able to continue conversations with him
- What does she think about the uptick in violence particularly in Albany and legislation introduced to ban ICE agents from banning masks?
- She will look at legislation when it comes to her desk, she isn’t going to discuss this now
- But she personally finds their masking abhorrent and she doesn’t understand why they have to wear the masks, but was told that it is to protect them and their families from doxxing