Alliance Alert: The federal budget bill passed by the House last week threatens to gut New York’s health care system, leaving 1.5 million New Yorkers without coverage and slashing $13.5 billion in funding from our state. If the Senate does not make critical changes, the fallout will be catastrophic—not just for New York’s health system, but for families, communities, and the most vulnerable among us.
State leaders are sounding the alarm. Senate Health Chair Gustavo Rivera and Assembly Health Chair Amy Paulin are already preparing to return to Albany to respond to the crisis if the megabill moves forward as is. They’ve made it clear: New York cannot absorb these cuts.
This is an all-hands-on-deck moment. If the Senate does not act to fix this bill:
- 1.5 million New Yorkers could lose health insurance
- Over 78,000 health care jobs could be wiped out
- Our hospitals, community health centers, and safety-net programs will face impossible choices and service cuts
Senator Rivera has said it plainly: even raising taxes on the wealthy won’t be enough to fill the gaping holes this federal budget would leave. The only way to stop the harm is to stop the cuts in the Senate.
Our Path Forward
We must:
- Push the Senate to reject these harmful cuts and rewrite the bill
- Demand protection for Medicaid, safety-net programs, and health care jobs
- Speak out loud and clear that New York cannot—and will not—backfill a $13.5 billion hole
This is a fight for the health and future of our state. Let’s make sure the Senate hears us loud and clear: Fix the bill or people in New York, and around the nation, will face the consequences.
Take action today by visiting: Take Action Now!
You can also call 1-855-245-3682 to talk to your senators and tell them to vote NO on the reconciliation bill if there are no significant changes.
State Officials Set to Return to Albany if Megabill Passes
By Katelyn Cordero and Maya Kaufman | Politico | May 27, 2025
A federal budget bill that passed the House this week could have sobering implications for New York, state government officials say.
State officials briefed lawmakers on the federal megabill last week, reporting a potential $13.5 billion hit to New York’s health care system, leaving roughly 1.5 million New Yorkers uninsured, the Hochul administration estimates.
In addition, the bill could also result in the loss of more than 78,000 health care jobs, according to an analysis by the Fiscal Policy Institute.
State lawmakers are weighing in, and they say New York’s health care system will be crippled if the Senate does not negotiate a better deal. Senate and Assembly Health Committee chairs Sen. Gustavo Rivera and Assemblymember Amy Paulin both said they expect to return to Albany if the megabill is passed through the Senate.
If passed lawmakers and Gov. Kathy Hochul will be forced to contend with how to move forward with “devastating” federal cuts, Paulin said.
“We have to see what the final product is, but we now know it is going to be much worse than we could have ever anticipated, and we will have to do the best we can to provide health care for the people of our state,” Paulin said to POLITICO.
“We can’t backfill this, we will have to make big decisions, for example, do we send out those rebate checks for $2 billion?” Paulin added.
Rivera said he stands firm in his position that the state should raise taxes for the rich, but said even that would not be enough to plug the gaping holes created by the projected federal cuts.
“I recognize that we are never going to be able to make up for everything that the feds are going to cut. I don’t know what they are going to chop off, but it’s going to be bad,” Rivera told POLITICO. “But we have to cover some of it, and we’ll have conversations about what is the most crucial, what is the most important.”