NY Governor Hochul Assembles Cabinet Amid Federal Funding Concerns

New York Governor Kathy Hochul (www.governor.ny.gov)

ALBANY, NY — New York Governor Kathy Hochul convened an emergency cabinet meeting this week to assess the projected impact of the recently enacted federal budget legislation.

According to a state-released analysis, New York could face a $13 billion reduction in annual healthcare funding, with potential consequences for Medicaid, the Essential Plan, and hospital reimbursements statewide. Officials estimate that the changes may result in approximately 1.5 million New Yorkers losing health insurance coverage, particularly those relying on state-subsidized programs.

The report also projects that nearly 300,000 New York households could lose access to SNAP (Supplemental Nutrition Assistance Program) benefits, citing stricter eligibility requirements and administrative changes.

Governor Hochul called the bill’s effects “devastating” and directed state agencies to develop contingency plans aimed at minimizing service disruptions and protecting vulnerable populations. Her administration emphasized that the financial burden would likely extend to local governments and healthcare systems already operating under strain.

While supporters of the federal bill argue that it seeks to rein in spending and reduce dependency on public assistance, critics—including several healthcare and social service advocates—warn that the policy changes could disproportionately affect low-income families and jeopardize public health outcomes across the state.

All New York Republican congressional representatives voted in favor of the measure, while the state’s Democratic delegation opposed it. The Hochul administration did not confirm whether it would pursue legal or legislative action but signaled that further review is underway.

State health and budget officials are expected to testify before legislative committees later this month as part of an ongoing assessment of the law’s long-term implications.
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