Key Findings

The House Republican budget proposal would cause 13.7 million Americans to lose health insurance, according to the Congressional Budget Office. New York would face a wide variety of specific impacts, including the following:

• House Republicans will target funding cuts at states that offer healthcare to undocumented immigrants, reducing federal Medicaid funding by $1.9 billion per year in New York.
• The proposal would also slash payments to safety net hospitals by restricting use of State Directed Payments, putting as much as $1.6 billion in New York hospital funding per year at risk and likely causing many hospital closures. NYC Health + Hospitals would be particularly affected.
• New York’s MCO tax, which was approved by Medicaid just four months ago, could be cancelled as soon as January 2026 – costing the state $3.7 billion over two years.
• New York would be forced to impose copays on Medicaid recipients earning as little as $16,000 per year, accelerating the medical debt crisis and preventing Medicaid recipients from seeking preventive care.
• The Republican proposal would force New York to impose burdensome work requirements and paperwork-heavy eligibility tests on Medicaid recipients. While most Medicaid recipients already work, nearly one million New Yorkers could lose coverage due to red tape.
• The budget would force some New Yorkers to sell their homes in order to access Medicaid long-term care.