Alliance Alert: The Alliance for Rights and Recovery joins Governor Hochul and state leaders in sounding the alarm over the catastrophic impacts of the federal reconciliation bill recently signed into law.
The data released last week shows the devastating truth: over 1.5 million New Yorkers are projected to lose health coverage, and 300,000 households will lose SNAP benefits. The fallout will hit the most vulnerable among us the hardest — including people with mental health and substance use challenges, people with disabilities, older adults, and low-income families.
This is more than just a budget crisis. It’s a human crisis.
The Alliance urges our members, advocates, providers, and community leaders to stay engaged and fight back. As state and local governments scramble to manage a $13 billion annual health services shortfall and $1.4 billion in new nutrition assistance costs, we must ensure essential services and supports are preserved — not gutted.
These federal cuts threaten:
- Access to mental health and substance use services, including programs already strained across the state.
- Essential Plan and Medicaid coverage for 2 million people.
- SNAP benefits and nutritional supports, compounding hunger and food insecurity.
- Local hospitals and providers, especially safety-net and rural institutions already in crisis.
We are calling on every level of government to respond with urgency. No one state can fill the gaps created by this federal law. But we can — and must — do everything possible to protect our people. The Alliance will continue to work with partners across the state and nation to push back against these cuts and protect funding for critical mental health, substance use, and disability services.
Stay tuned for more from us, including ways to contact your legislators, join advocacy actions, and support efforts to safeguard the programs New Yorkers rely on.
Together, we fight for recovery, dignity, and justice. Now more than ever.
Governor Hochul Unveils Devastating Impacts of Republicans’ ‘Big Ugly Bill’ on New York State
Office of Governor Kathy Hochul | July 11, 2025
Republicans Rip Away Health Care Coverage for Over 1.5 Million New Yorkers and Jeopardize SNAP Benefits for Nearly 3 Million New Yorkers
300,000 Households Projected To Lose SNAP Benefits Due to Harsher SNAP Work Requirements
All New York’s GOP Congressional Representatives Voted for These Cuts
Governor Kathy Hochul today released new data showing the devastating impacts of the Republicans’ “Big Ugly Bill” on New York State. The data show the enormous scale of the recently-enacted law, including draconian cuts to Medicaid, hospitals and SNAP benefits, and the impact of those cuts on the millions of New Yorkers who rely on these lifeline programs and services.
“I’ve been very clear: no state can fully undo the damage in this bill or backfill cuts of this scale,” Governor Hochul said. “I’m working with the Legislature to brace for the impact and protect as many New Yorkers as possible because your family is my fight. I will never turn my back on New Yorkers or the values that we share.”
Essential Plan/Medicaid Cuts
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, making it more difficult for all New Yorkers to find care when they need it.
- More than 2 million New Yorkers will lose their current insurance coverage, including approximately 730,000 lawfully-present non-citizens who could lose Essential Plan (EP) coverage as over 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 over $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.
The size and scope of the Rural Transformation Fund included in the law — an average of $10 billion annually for 5 years for rural hospitals nationwide — is wholly inadequate to meet the needs of our State. Adding insult to injury, none of these funds are guaranteed to reach any New York State hospital.
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 history, 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 3 million New Yorkers rely on to put food on the table. 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. It 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. In total, New York and local governments are facing up to $1.4 billion in new costs annually.
The law also imposes more punitive administratively complex work requirements on SNAP recipients, which will make it harder to qualify for assistance. As a result, 300,000 households are projected to lose some or all of their SNAP benefits, with an average loss of $220/month, devastating low-income families’ grocery budgets.
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 benefits 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 would 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.
New York State Health Commissioner Dr. James McDonald said, “This bill undermines health care for millions of New Yorkers, dismantles vital services, and places our most vulnerable families in jeopardy. With the support of Governor Hochul, we remain unwavering in our commitment to safeguarding the health and well-being of all New Yorkers, ensuring they continue to receive the care and support they rightfully deserve.”
New York State Office of Temporary and Disability Assistance Commissioner Barbara C. Guinn said, “The historic cuts and cost shifts related to SNAP enacted last week will take food off the tables of hundreds of thousands of New Yorkers and shift billions of dollars in costs onto the backs of the State and local governments in New York, while weakening the very safety net families rely on when times are hard. As the State agency tasked with administering SNAP and other essential support programs, we are deeply concerned, not only for the immediate harm to individuals and families, but for the continued erosion of the social safety net that has helped support low-income New Yorkers across the state. At a time when so many households are struggling with the high cost of food, rent, and energy – we should not be reducing access to vital economic supports.”
State Senate Majority Leader Andrea Stewart-Cousins said, “By passing this bill, House Republicans have rubber-stamped Donald Trump’s cruel and dangerous agenda, one that rips Medicaid away from 1.5 million New Yorkers, slashes $13 billion from our healthcare system, and raises costs for working families. As we continue to assess the full scope of these devastating cuts, it’s clear that the damage will leave our state deeply vulnerable. All of the progress we’ve made is under threat. No state can fully fill the hole this bill has blown open but we are committed to doing everything in our power to protect New Yorkers and keep our communities thriving.”
Assembly Speaker Carl E. Heastie said, “This bill will devastate the lives of countless families across our state, especially our most vulnerable neighbors. By cutting vital programs like SNAP and Medicaid, the administration has indicated that they care more about the pockets of their billionaire friends than they do about the families, children and people with disabilities that rely on this funding to survive day to day. I am truly disgusted by the public servants – especially New York’s seven Republican members of Congress – who voted for this and continue to lie about the impact this will have on their communities. They should be honest about the fact that they stood by their billionaire donors at a cost of their neighbors’ access to food, healthcare and essential services.”
State Senator Toby Ann Stavisky said, “Our NY GOP Congressmembers have sold out millions of New Yorkers in fear of retribution from Donald Trump. This disgraceful bill continues a non-stop assault on our nation’s universities and seeks to destroy our educational institutions. I have worked hand-in-hand with Governor Hochul to keep our colleges affordable, accessible and of high quality and will continue to do so. These actions will ultimately hurt poor and middle class families, especially those in upstate and rural areas where our universities are the top economic driver. It’s an utter and complete betrayal of the people of New York State.”
State Senator Roxanne J. Persaud said, “The cuts in this bill represent real harm to real people,” said Senator Roxanne J. Persaud. “Cutting essential programs like Medicaid and SNAP will hurt vulnerable individuals and families, increase hunger, and destabilize our health care system. These changes not only put over a million New Yorkers at risk of losing health coverage, but they also shift unsustainable costs to our state and local governments. This is a direct attack on the most underserved members in our communities, and it will leave our families, hospitals, and small businesses struggling.”
State Senator Samra Brouk said, “The federal administration’s “Big Ugly Bill” betrays Americans by depriving them of health care coverage and raising healthcare costs across the board. It also enacts the largest SNAP cuts in American history. 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.”
Assemblymember Amy Paulin said, “As Chair of the Assembly Health Committee, I am deeply alarmed by the catastrophic impacts of the federal bill. Slashing Medicaid and Essential Plan funding will strip health care coverage from over 1.5 million New Yorkers and devastate our hospitals and providers — all while driving up costs for everyone else. These cruel and short-sighted cuts, combined with the gutting of SNAP benefits, will worsen health outcomes, increase hunger, and punish all of us.”
Assemblymember Andrew Hevesi said, “This bill is the most devastating legislative assault on food assistance, healthcare, human services and Americans that we’ve seen in a generation. $13 billion in Medicaid cuts will put 1.5 million New Yorkers at risk of losing their healthcare. Nearly 300,000 New Yorkers — our constituents — are projected to lose SNAP benefits; including cuts in benefits to families with children, seniors, people with disabilities; domestic violence survivors, human trafficking survivors and veterans. Everyone involved in this bill — from the President to the 7 New York GOP Congressional Representatives who voted for it — have sold out their constituents and should be ashamed for callously tossing aside those who trusted them to represent their interests.”
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 Alicia L. Hyndman said, “This so-called ‘Big Ugly Bill’ is a direct assault on the most vulnerable New Yorkers—gutting essential health care, food assistance, and educational opportunity in one fell swoop. The harm is staggering: millions of people could lose health coverage, families will struggle to put food on the table, and students will face higher barriers to higher education. These are not just numbers—they’re lives. We in New York refuse to sit idle while Washington plays politics with our communities’ survival. I stand with Governor Hochul in fighting to protect every New Yorker’s basic dignity, health, and future.”
Assemblymember Jo Anne Simon said, “This bill is a betrayal of the people we are meant to serve. It turns its back on our most vulnerable, gutting the support they need to stay healthy, fed, and secure. At its core, this bill is a giveaway to the wealthy, sacrificing the needs of hard-working families for billionaires’ gain. As a result, everyday New Yorkers are left with impossible choices and an uncertain future. New York will keep fighting to protect our communities and build a future rooted in care, dignity, and justice.”
State Tallies Hit from Medicaid Cuts at $3B
Ethan Geringer-Sameth | Crain’s Health Pulse | July 11, 2025
Medicaid cuts in President Donald Trump’s megabill punch a hole in the state budget that will be impossible to fill in the coming years, state officials said this week.
New York is facing a $750 million gap in the current fiscal year and at least $3 billion next year due to federal Medicaid reductions that will go into effect beginning in January, the state’s budget director Blake Washington said Thursday. The first major hit will come from reductions to the state’s Essential Plan, which covers low-income New Yorkers who do not qualify for Medicaid. The impact is the first of several reductions in federal Medicaid funding slated in the coming years that New York is not prepared to replace, Washington said, leaving policymakers with difficult decisions on the horizon.
“There’s no taxing our way out of this,” he said. “There’s no way the state of New York can finance what’s been foisted upon us.”
The estimates are preliminary as officials wait for the Congressional Budget Office to assess the bill. But the figures paint the most concrete picture to date of what the state now faces under Trump’s spending plan since legislators passed a $254 billion state budget in May that did not account for the cuts.
The figures do not include the impact on people who will become uninsured or the hospitals that will be on the hook for covering more uncompensated care while losing their own Medicaid revenue sources. Taken together, the reductions will lead to more people relying on hospitals for treatment, which will mean more resources going towards acute care at the expense of preventative services, Washington said.
The state Department of Health estimates 1.5 million people will become uninsured under the megabill, including 1.3 million Medicaid recipients and another 730,000 lawfully present residents covered by the Essential Plan. Roughly 7 million people are on Medicaid in New York, with the largest concentrations in the metro area.
Outside of the state’s financial plan, the direct costs to hospitals of treating uninsured patients are estimated to rise to $3 billion a year, according to the governor’s office on Friday. Industry leaders have projected billions more in annual losses from diminished Medicaid reimbursements and reduced aid to safety-net hospitals.
Hospital leaders, who have been sounding the alarm for months, are now beginning to face the reality. In a letter to hospital CEOs after Congress passed the final reconciliation bill last week, Greater New York Hospital Association President Kenneth Raske called the package “the most destructive health care cuts in American history.”
“There is no candy-coating the bill’s impact on New York,” he wrote.
The state also expects to pay another $500 million in the coming years to facilitate new Medicaid work requirements.
The bill has put Gov. Kathy Hochul in a bind weeks after signing a budget with major increases to the state’s Medicaid program, one of the most well-funded in the country. The governor faced criticism from budget watchdogs for including $2 billion in the state budget for one-time checks of up to $400 for low- and middle-income households while the federal cuts loomed. Washington defended the checks on Thursday. “This is one policy prescription that we think provides modest relief for families throughout the state,” he said.
Lawmakers left Albany this year with the possibility of convening a special session to address the coming storm. Now, budget officials in the Hochul administration and the legislature are reviewing the federal spending plan, but it is too early to tell whether lawmakers will revisit the budget this year, Washington said. The state has some tools to modify and restrain spending without the legislature in the current fiscal year, he said.
Trump’s SNAP Cuts Will Cost New York $1.4B, State Says
By Ethan Geringer-Sameth | Crain’s Health Pulse | July 15, 2025
Changes to federal nutrition assistance policies in President Donald Trump’s megabill could cost the state over a billion a year, according to an analysis from the governor’s office.
The federal reconciliation bill Congress passed this month changes the formula for how the Supplemental Nutrition Assistance Program, or food stamps, are paid for, pushing billions of dollars for the program onto states. Beginning in 2027, states will be required to cover 15% of the program, which is currently fully funded by federal dollars, or risk losing it entirely.
That shift is expected to cost the state $1.2 billion a year once it takes effect in October 2027, plus another $168 million from the city and county governments, according to Gov. Kathy Hochul’s office. Including an anticipated $36 million in additional administrative fees to the state, the cost to New York’s state and county budgets will be an estimated $1.4 billion a year. The legislation also cut $29 million for education programs about nutritious eating for people relying on food stamps.
The state also expects new administrative requirements for SNAP recipients to limit or eliminate the benefit for 300,000 low-income households, a $220 per month loss on average.
The reductions will mean greater food insecurity, hunger and malnutrition for thousands of families throughout the state. That cut is also expected to have ripple effects for local grocery stores and farmers who take food stamps.
The state issues approximately $7.4 billion in food stamps each year, which it estimates generates $11.5 billion in economic activity at local food retailers based on research from the U.S. Department of Agriculture. More than 18,000 businesses accept SNAP statewide, including 400 farmers’ markets and produce stands.
Asked how the state plans to support local businesses impacted by the reductions, Nicolette Simmonds, a spokeswoman for the governor, pointed to $7 billion that lawmakers used from the state’s rainy day fund to pay off a federal loan that had been shouldered by businesses. Paying off the loan, used to cover unemployment during the Covid-19 pandemic, will save employers an average of $100 per employee in 2026 and $250 per employee in 2027 from paying off the loan, Simmonds said.
The SNAP reductions constitute one of the biggest hits to the state’s financial plan from the reconciliation bill. The state also faces a $750 million gap this year and $3 billion next year due to cuts to federal Medicaid spending.