Governor Hochul Highlights Negative Effects of Federal Budget Act on Health Care
Per the two notices below, Governor Hochul highlights the negative effects of the federal budget act on health care in New York State and convenes her cabinet to address and try to mitigate any damage.
Governor Hochul Joins U.S. Representative Pat Ryan to Sound the Alarm on Devastating Impacts of Republicans’ ‘Big Ugly Bill’
Estimated Health Impacts of Almost $13 Billion Every Year, Devastating Our Health Care System
1.5 Million New Yorkers To Lose Health Care Coverage and Become Uninsured; Estimated $8 Billion in Losses for New York’s Hospitals
Governor Kathy Hochul today joined U.S. Representative Pat Ryan, local elected officials, doctors, farmers and non profit workers to sound the alarm on the detrimental effects of President Trump and Congressional Republicans’ “Big Ugly Bill” on New York State. The cuts imposed by Washington Republicans include an anticipated almost $13 billion impact to New York’s health care system, 1.5 million New Yorkers losing their health insurance coverage, and over 300,000 households projected to lose some or all of their SNAP benefits.
“Washington Republicans have made it clear, they do not care about safeguarding the lifesaving programs and health care systems that millions of New Yorkers rely on everyday,” Governor Hochul said. “That’s the reality — but here’s another reality, I will never back down from the fight to protect New Yorkers and the resources that they need to support their families.”
Representative Pat Ryan said, “This ‘Big Ugly Betrayal’ is a triple–whammy: it makes devastating cuts to healthcare and food programs while driving up costs for everyone; gives massive tax breaks to big corporations and the ultra-rich instead of the middle class; and irresponsibly adds nearly $4 trillion to the national debt. Families will lose health care. Hospitals will close. Kids will go hungry. Energy prices will go up. All so the wealthiest 0.1 percent can get even richer. That’s not why I came to Congress. I believe that sick kids should have access to affordable, high-quality health care. I believe that seniors should never fear going hungry. I believe that every child deserves to drink clean water and breathe clean air, and I believe that we have a duty to fight for our veterans, just like they fought for us. I believe that these aren’t Democratic or Republican values, but values shared by every freedom-loving American. This bill is an affront to those values. People will die without health care. Our economy will suffer. At every step and on every level, we have to be fighting for the people and against anyone who would do them harm.”
One Big Beautiful Bill Act (OBBBA) Impact on NY District 18
- SNAP: There are currently 70,724 individuals across 35,784 households in NY-18 receiving SNAP benefits
- Medicaid: There are currently 204,073 NY-18 Medicaid enrollees; 33,178 of whom are estimated to lose Medicaid coverage due to OBBBA changes
- Essential Plan: There are currently 42,500 NY-18 enrollees in the Essential Plan (EP); 5,214 of whom are estimated to lose EP coverage due to OBBBA changes
Essential Plan/Medicaid Cuts Across New York State
Republicans’ cuts to health care and other benefits through the OBBBA will negatively impact all New Yorkers. These changes will eliminate insurance coverage for millions of New Yorkers, destabilize health insurance programs across the state, and have a substantial fiscal impact on the State and the New York health care system, amounting to nearly $13 billion annually. The OBBBA will make it challenging for health care providers statewide to continue operating and will make it more difficult for all New Yorkers to access care when needed.
Over two million New Yorkers could lose their current insurance coverage. This includes approximately 730,000 lawfully present non-citizens who could lose their Essential Plan (EP) coverage, as over half of the budget for the EP, approximately $7.5 billion in federal funding, is being eliminated. Additionally, a further 1.3 million New Yorkers will lose Medicaid coverage due to new eligibility and verification hurdles.
Out of these 2 million people, 1.5 million New Yorkers are expected to become uninsured. As a result, uncompensated care costs to hospitals and providers are projected to rise to over $3 billion annually. This means that New Yorkers will have less access to care and will face higher medical bills.
Analysis from the Greater New York Hospital Association (GNYHA) and the Healthcare Association of New York State (HANYS) estimates a total $8 billion in annual cuts to New York’s hospitals and health systems, which could force hospitals to curtail critically needed services such as maternity care and psychiatric treatment, not to mention to downsize operations, and even close entirely. These consequences will not only affect Medicaid enrollees, but also harm everyone who requires hospital care, leading to longer wait times and less access to critical services.
Rural Transformation Fund
The Republican OBBBA also includes $50 billion for rural and community hospitals. The size and scope of the Rural Transformation Fund — an average of $10 billion annually for five years for rural hospitals nationwide — is wholly inadequate to protect hospitals and health systems when compared to the estimated $8 billion in annual cuts that New York’s hospitals and health systems alone are facing. Adding insult to injury, these funds will also be awarded on a discretionary basis, meaning there is no guarantee that New York and its 40 critical access and community hospitals will benefit.
SNAP and Nutrition Assistance Cuts Statewide
Since the inception of SNAP, the federal government has funded these benefits entirely, receiving bipartisan support from presidents of both parties and in Congress.
For the first time in SNAP’s history, the Republican-enacted law mandates that states contribute to the cost of benefits, or risk ending their SNAP programs entirely. This move jeopardizes a program that nearly three million New Yorkers rely on to put food on the table. As a result, New York and local governments are facing up to $1.4 billion in new costs annually.
This further cuts the federal share of SNAP administrative costs from 50 percent to 25 percent, increasing costs for the State by roughly $36 million annually and for counties and New York City by roughly $168 million annually. Counties will have to incorporate this fiscal hit into their 2026 budgets by this fall.
"I will never back down from the fight to protect New Yorkers and the resources that they need to support their families.”
Governor Kathy Hochul
Additionally, New York State is facing over $900 million in lost SNAP benefits for New Yorkers due to new, more punitive program requirements that will make it harder for people to qualify for the assistance they need.
- The law intentionally imposes unnecessarily administratively complex work requirements on SNAP recipients, which is projected to result in more than 300,000 households losing some or all of their SNAP benefits, devastating low-income families’ grocery budgets. With an average loss of $220 per household per month, New Yorkers are projected to lose more than $800 million of SNAP benefits due to these changes.
- The law further restricts eligibility for legally present noncitizens who have previously been eligible for SNAP, now excluding anyone that does not have legal permanent resident status, Cuban/Haitian status, or Compact of Free Association status. As a result, 41,000 noncitizens in New York State, including individuals granted refugee or asylee status by the federal government, are expected to lose the food assistance they rely on to feed themselves and their families, totaling roughly $108 million in lost SNAP benefits for New Yorkers.
The law also cuts funding for the SNAP-Ed New York Program, which promotes healthy eating and efficient use of already limited SNAP benefits. This program teaches SNAP beneficiaries how to shop for and cook wholesome, healthy meals on a tight budget. As a result, New York will lose $29 million annually that funded this work by 18 community-based organizations across the entire state. These organizations include Cornell Cooperative Extensions in Albany, Allegany, Erie, Wayne, Oneida, Onondaga, Orange, St. Lawrence, Steuben and Suffolk counties.
Beyond worsening food insecurity and malnutrition, cuts to the program will hurt local businesses and weaken SNAP’s ability to boost local economies in every state. The U.S. Department of Agriculture’s (USDA) own research has shown that SNAP benefits have a multiplier effect. Every $1 spent on SNAP benefits generates $1.54 in economic activity as recipients spend their benefits at local businesses in their communities. For New York, where approximately $7.4 billion in SNAP benefits are issued annually, that means $11.5 billion in economic activity is generated across urban, suburban and rural areas.
Slashing families’ grocery budgets will have a ripple effect throughout the food supply chain, reducing revenue for thousands of businesses. If states are forced to end their SNAP programs, it will not only increase hunger and poverty but also struggle rural grocery stores to stay open. People in agriculture and the food industry will lose jobs, and State and local economies will suffer.
In New York State alone, over 18,000 retailers, including grocery stores, local shops and more than 400 SNAP-authorized local farmers’ markets and farm stands, accept SNAP. The loss of SNAP sales and matching dollars will have a critical impact on local economies.
SNAP sales in the farming community have dramatically increased since 2019, providing New York consumers with access to healthy, farm-fresh foods and additional economic development dollars for our farm communities. However, as the State matches SNAP dollars spent at farm markets through the Fresh2You FreshConnect program, the hit to farms of decreased SNAP funding is doubled.
New York State Health Commissioner Dr. James McDonald said, “These cuts will have a devastating impact on all New Yorkers, leaving an estimated 1.5 million people in New York uninsured, stripping social and health care safety net services, driving up food insecurity and leaving hospitals to shoulder the burden of increasing health care costs. These cuts to health care coverage and SNAP benefits are unprecedented and deeply disturbing. The State Department of Health will continue to work with Governor Kathy Hochul, our dedicated hospital systems and state agency partners to take every measure possible to mitigate the impact of this bill.”
State Senator Samra Brouk said, “The federal administration’s ‘Big Ugly Bill’ betrays Americans by proposing severe, catastrophic cuts to healthcare and SNAP. In New York State, many residents will lose healthcare coverage, hospitals will shoulder costs of uncompensated care, and increased medical bills will place a strain on anyone seeking care. Millions of New Yorkers will also be impacted by worsening food insecurity, loss of jobs in the food industry, and decreased SNAP funding for local farmers’ markets. This bill will cause irreparable harm to hardworking families and deepen inequity between working people and the ultra wealthy. New Yorkers deserve better–I will continue to fight for investments in our state, especially for children and working families, and prioritize the welfare of my neighbors.”
State Senator Michelle Hinchey said, “The federal budget bill passed by Congressional Republicans and signed by President Trump makes working- and middle-class New Yorkers less safe, less healthy, and less economically secure. Families will go hungry. Children will lose care. People will suffer waiting for healthcare that’s no longer there. These cuts to our communities were made by the federal administration to fund tax breaks for the ultra-wealthy and special interests. This is the recklessness Washington has delivered to us, and we will do everything we can to meet this despicable moment with compassion and steady leadership.”
State Senator Roxanne J. Persaud said, “These devastating cuts in the ‘Big Ugly Bill’ will strip vital support from millions of New Yorkers by slashing Medicaid and SNAP, increasing hunger and insecurity, and putting unsustainable costs on our hospitals, families, and local governments. This is a direct attack on our most vulnerable communities, and we must protect every New Yorker’s basic dignity and well‑being.”
Assemblymember Maritza Dávila said, “The so-called ‘Big Ugly Bill’ is nothing short of a direct attack on low-income families, immigrants, seniors, and working people across New York. By slashing Medicaid, SNAP, and Essential Plan funding, Congressional Republicans have chosen cruelty over compassion — ripping food from the tables of nearly 3 million New Yorkers and jeopardizing health care for over 1.5 million people. These cuts will only deepen poverty and hunger. As Chair of the Assembly Social Services Committee, I stand firmly with Governor Hochul in opposing this devastating legislation, and I urge every New Yorker to hold their federal representatives accountable. We must fight back to protect the services our communities depend on — because the cost of doing nothing is far too high.”
Assemblymember Jonathan Jacobson said, “The Big Ugly Bill is making our nation a second-class country. A first-class nation does not cut health insurance and hospitals, aid to public schools, aid to fight hunger and pollution, and funding for medical research to find new medications to cure disease. This act will have a real impact on the people I represent and the Hudson Valley. Thousands of people will be hurt by cuts to Medicaid, the Essential Plan, the Affordable Care Act, funding to food banks, food pantries and food stamps (SNAP). Hospital care will decrease, and infrastructure needs will not be met. This pain is being inflicted to enable tax cuts to billionaires and millionaires who do not need the money.”
Ulster County Executive Jen Metzger said, “The Trump budget bill passed by Congressional Republicans takes resources from those who need it most and gives it to those who need it least, providing tax cuts disproportionately benefiting the wealthy and slashing the social safety net to pay for it. The budget cuts could be devastating in the years ahead for Ulster County, where 18,000 households rely on SNAP to afford food, and many tens of thousands of residents depend on Medicaid and Child Healthcare Plus to afford health care. Between these cuts, the Trump tariffs, and the impacts a much larger national debt will have on mortgage rates and other borrowing costs, this disastrous budget will make life unaffordable for many of our residents.”
Governor Hochul Convenes Cabinet Meeting on Devastating Impacts of Republicans’ ‘Big Ugly Bill’ on New York State
Governor Directs State Agencies To Prepare Strategies for Limiting Long-Term Damage to Vital Programs Facing Federal Cuts
Republican Cuts Threaten To Rip Away Health Care Coverage for More Than 1.5 Million New Yorkers and Jeopardize SNAP Benefits for Nearly 3 Million New Yorkers
All New York’s GOP Congressional Representatives Voted for These Cuts
In the face of detrimental federal funding cuts, Governor Kathy Hochul today convened a cabinet meeting to discuss the impacts of President Trump’s “Big Ugly Bill” on New York State. The cuts imposed by Washington Republicans include an anticipated $13 billion being cut from New York’s health care system, 1.5 million New Yorkers being stripped of health insurance coverage, and more than 300,000 households projected to lose some or all of their SNAP benefits. In addition to assessing these and other impacts, Governor Hochul has directed State agencies to prepare comprehensive strategies to help limit the long-term damage to vital programs facing federal cuts.
“While Republicans in Washington callously slash funding for vital programs across the country, my administration is standing up for New Yorkers to soften the blow of these cuts amidst an affordability crisis,” Governor Hochul said. “President Trump’s devastating ‘Big Ugly Bill’ will inflict harm across the state, leaving detrimental gaps in funding and families without the crucial benefits and coverage that they need. New York State remains laser-focused on ensuring New Yorkers have access to resources and support necessary to uplift them and their families.”
Republicans’ cuts to health care and other benefits will hurt all New Yorkers. The changes will eliminate insurance coverage for millions of New Yorkers, destabilize health insurance programs statewide, and have an overall fiscal impact on the State and the New York health care system of almost $13 billion per year. These changes will make it harder for providers statewide to keep operating and make it more difficult for all New Yorkers to find care when they need it.
- More than 2 million New Yorkers could lose their current insurance coverage, including approximately 730,000 lawfully-present non-citizens who could lose Essential Plan (EP) coverage as more than half of EP's budget — $7.5 billion in federal funding — is eliminated, and a further 1.3 million New Yorkers who will lose Medicaid coverage due to new eligibility and verification hurdles.
- Of these 2 million people, 1.5 million New Yorkers are anticipated to become uninsured, with uncompensated care costs to hospitals and providers estimated to rise to more than $3 billion annually — which means less access to care and higher medical bills for New Yorkers.
- Analysis from the Greater New York Hospital Association (GNYHA) and the Healthcare Association of New York State (HANYS) estimates a total $8 billion in annual cuts to New York’s hospitals and health systems, which could force hospitals to curtail critically needed services such as maternity care and psychiatric treatment, not to mention to downsize operations, and even close entirely. These consequences will not only affect Medicaid enrollees, but also harm everyone who requires hospital care, leading to longer wait times and less access to critical services.
“While Republicans in Washington callously slash funding for vital programs across the country, my administration is standing up for New Yorkers to soften the blow of these cuts amidst an affordability crisis."
Governor Kathy Hochul
SNAP and Nutrition Assistance
Since the inception of SNAP, the federal government has funded these benefits 100 percent, receiving bipartisan support from presidents of both parties and in Congress. For the first time in the history of SNAP, the Republicans’ enacted law requires states to contribute to the cost of benefits, or risk having to end their SNAP programs entirely — jeopardizing a program that nearly three million New Yorkers rely on to put food on the table. In total, as a result, New York and local governments are facing up to $1.4 billion in new costs annually:
- New York State will be required to fund 15 percent of all SNAP benefits starting as early as October 1, 2027, at an estimated cost to the State of $1.2 billion per year.
- The law further cuts the federal share of SNAP administrative costs from 50 percent to 25 percent which will increase costs for the State by roughly $36 million annually, and increase costs for counties and New York City by roughly $168 million annually. Counties will have to begin incorporating this fiscal hit into their 2026 budgets due this fall.
New York State is also facing more than $900 million in lost SNAP benefits for New Yorkers, due to new, more punitive program requirements that will make it harder for people to qualify for the assistance they need:
- The law intentionally imposes unnecessarily administratively complex work requirements on SNAP recipients, which is projected to result in more than 300,000 households losing some or all of their SNAP benefits, devastating low-income households’ grocery budgets. With an average loss of $220 per household per month, New Yorkers are projected to lose more than $800 million of SNAP benefits due to these changes.
- The law further restricts eligibility for legally present noncitizens who have previously been eligible for SNAP, now excluding anyone that does not have legal permanent resident status, Cuban/Haitian status, or Compact of Free Association status. As a result, 41,000 noncitizens in New York State, including individuals granted refugee or asylee status by the federal government, are expected to lose the food assistance they rely on to feed themselves and their families, totaling roughly $108 million in lost SNAP benefits for New Yorkers.
The law also cuts funds for the SNAP-Ed New York Program, which promotes healthy eating and efficient use of already modest SNAP benefits by teaching SNAP beneficiaries how to shop for and cook wholesome, healthy meals on a limited budget:
- As a result, New York will lose $29 million annually that funded this work by 18 community-based organizations throughout the entire State including Cornell Cooperative Extensions in Albany, Allegany, Erie, Wayne, Oneida, Onondaga, Orange, St. Lawrence, Steuben and Suffolk counties.
Beyond worsening food insecurity and malnutrition, cuts to the program will hurt local businesses and weaken SNAP’s ability to boost local economies in every state. The U.S. Department of Agriculture’s (USDA) own research has shown that SNAP benefits have a multiplier effect, with every $1 spent on SNAP generating $1.54 in economic activity as recipients spend their benefits at local businesses in their communities. For New York, where a total of approximately $7.4 billion in SNAP benefits are issued every year, that means $11.5 billion in economic activity is generated annually across urban, suburban and rural areas alike. Slashing families' grocery budgets will reduce revenue for thousands of businesses, with ripple effects throughout the food supply chain. If states are forced to end their SNAP programs, in addition to increasing hunger and poverty, grocery stores in rural areas will struggle to stay open, people in agriculture and the food industry will lose jobs, and State and local economies will suffer:
- Lost SNAP sales and matching dollars will have a critical impact on local economies and the more than 18,000 retailers that accept SNAP in New York State, including grocery stores, local shops and more than 400 SNAP-authorized local farmers’ markets and farm stands that can be found in every county in New York selling New York agricultural products to the people in their local community.
- SNAP sales in the farming community have dramatically increased since 2019, providing New York consumers access to healthy, farm fresh foods and providing our farm communities additional economic development dollars.
- As the State matches SNAP dollars spent at farm markets through the Fresh2You FreshConnect program, the hit to farms of decreased SNAP funding is doubled.