In February, Congressional Republicans – including all seven New York representatives – voted for a budget reconciliation package requiring $880 billion in cuts to Medicaid over the next ten years. The reconciliation package set an overall target for spending reductions, but didn’t announce what specifically would be cut from the program. This week, House leadership finally revealed which program areas will be targeted.
FPI presented a briefing on the New York State budget for fiscal year 2026.
Republicans have argued that they can cut Medicaid without cutting services to vulnerable populations by cutting “waste, fraud and abuse”; by targeting people who are not, or in their view should not be, eligible for the program; and by reforming complex state financing mechanisms like provider taxes.
Thursday Briefing, April 17 https://youtu.be/AOGhN5R9myw
The Trump Administration Just Cut Hundreds of Millions of Dollars a Year from New York’s 1115 waiver – and that could be just the beginning
New York State legislators have the opportunity to address private sector healthcare affordability by passing the Fair Pricing Act (S.705/A.2140). The act would address the root cause of rising healthcare costs by regulating hospital prices, which are the key driver of spiraling healthcare inflation.
New York State has enacted substantial expansions to its childcare subsidy program in recent years, supporting more families than ever. Yet the State risks undermining these gains by underfunding the program in fiscal year 2026, forcing New York City and other localities across the state to deny service to eligible families beginning as early as April 2025, putting them on a waitlist.
The New York City Housing Authority (NYCHA) houses over 500,000 New Yorkers and receives a majority of its funding from the federal government, leaving it especially at risk of impending federal budget cuts. New York State must be prepared to fill gaps in both the operating funding and capital funding for NYCHA.
Download the Memo Download the Report The Fiscal Policy Institute today released two publications on how to fix New York State's insolvent unemployment insurance system: a memo recommending tax changes, and a short report detailing the UI system’s chronic underfunding and low benefit level. Unemployment insurance (UI), which provides temporary income to laid-off workers, is one of the State’s most important economic stabilization policies. Unemployment can both throw workers into poverty and exacerbate recessions by [...]
The statewide transition to PPL on April 1 risks being a catastrophe for home care workers – lowering wages while eliminating health insurance coverage for tens or even hundreds of thousands of workers. Neither PPL nor the state has offered any explanation of why this is happening or what PPL intends to do about it; many workers are currently seeking information about whether they will still have health insurance on April 1.
The fiscal year 2026 budget cycle is upon us and “affordability” is taking center stage. The mandate to address the rapidly rising cost-of-living in New York has never been more urgent, with consumer prices up about 20 percent since 2020. The cost of housing, in particular, has skyrocketed in the years since the Covid-19 pandemic, with home prices up over 50 percent—making housing costs the number one priority for addressing affordability in New York.
Healthcare didn’t take center stage in Governor Hochul’s State of the State address this week, but that doesn’t mean it won’t be central to New York politics this session. After all, rising healthcare costs are a key component of the affordability crisis squeezing New Yorkers, with premiums for individual and small-group health insurance set to increase by 12.7 percent this year.
Governor Hochul’s State of the State address made clear that “affordability” is her top priority this session. As part of her agenda, Governor Hochul and her team have put forward a set of policies intended to “put money back in New Yorkers’ pockets.” The four major proposals include a tax cut, an “inflation rebate payment,” an expansion of the child tax credit, and fully funding free school lunches for all public-school students in the State.
By the State’s account, it currently provides enough UPK funding to provide a UPK seat to every four-year-old in the State. Nevertheless, the program remains far short of universal, with incomplete coverage of four-year-olds outside of the state’s major cities and limited provision for three-year-olds across the state.
The Superfund is a fiscally sound mechanism for upgrading our statewide infrastructure in the face of urgent climate challenges, and FPI commends the governor and legislature for successfully working together to enact it.