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Where They're Split
Medicaid: Medicaid is funded by a combination of federal, state, and local money, but federal support has declined and Congress is likely to make deep cuts to the program to finance another round of Trump tax cuts. The program accounts for the largest chunk of the state’s budget and provides comprehensive free or low-cost healthcare for over 7 million New Yorkers.
According to Hochul, the Department of Health is expected to increase Medicaid spending by 13.7 percent, or $4.3 billion. But the Fiscal Policy Institute points out that underlying program growth is actually just 3.7 percent — largely due to declining federal support.
Both chambers proposed higher provider reimbursement rates for community clinics, hospitals, and nursing homes, as well as restoring $500 million for distressed safety-net hospitals that was removed in the executive budget. Funding for these initiatives could come from a new tax arrangement that could bring in $1.4 billion this year.
Targeted Inflationary Increase: The vast bulk of New York’s social services is administered by nonprofits that provide a range of contracted services like mental health counseling and homeless shelters. Providers have long complained of a system teetering on collapse due to chronic underfunding and understaffing.
Under Governor Kathy Hochul, the sector has received annual cost-of-living raises for the first time in years. This year, Hochul is calling for a modest 2.1 percent increase, while the legislature’s proposals include a 7.8 percent increase backed by nonprofits that have faced crippling turnover and high vacancies.
Energy Affordability Programs: Both chambers support adding $200 million to the Energy Affordability Program, which provides monthly utility discounts to 2.7 million low-income households. The governor’s proposal doesn’t currently include the program.
If expanded, EAP could address rising utility costs from “sky-high” rate hikes and newly imposed Canadian tariffs impacting the electrical grid.
It could also augment the federally funded LIHEAP program, which faces an uncertain future in Washington. In January, New York scrambled to reopen HEAP applications after funding for the popular program unexpectedly ran out months early.
Where They're Close
Unmet Needs: New York’s aging population is growing. Across the state, county waiting lists for in-home senior services have grown, too.
Funding for “unmet needs” provides meals, housekeeping and other supportive services that allow the elderly to live independently. The program is billed as a way for the state to avoid expensive long-term care such as nursing homes, which make up a growing sector of the state’s Medicaid spending.
The governor’s proposal increases funding for the program by $45 million from $8 million, a move the Assembly agrees with. The Senate would like to see the state invest $10 million more, for a total of $63 million.
New York State Supportive Housing Program: Funding rates for New York’s oldest supportive housing model have remained nearly unchanged since the program’s inception in 1987.
The State Supportive Housing Program (NYSSHP) includes over 20,000 permanent units that have fallen into disrepair with “leaky roofs, faulty elevators, and recurrent floodings.”
Under the governor’s proposals, the program could see reimbursement rates rise by at least 40 percent. The legislature is pushing for higher investment proposed by housing advocates who say the program has been “slowly imploding for decades.” In recent years, over a third of nonprofit providers have closed their doors, merged operations or left the program entirely.