Lance's Corner

Governor Hochul Updates New Yorkers on the Devastating Impact of Federal Cuts on New York State’s Health and Human Service Programs

Mar 28, 2025

Per the notice below, Governor Hochul has updated the effects of federal health care funding cuts on New York.

By the Numbers: Governor Hochul Updates New Yorkers on the Devastating Impact of Federal Cuts on New York State’s Health and Human Service Programs

Over $300 Million in Cuts to Department of Health Programs Across the State for Vital Public Health Programming

$40 Million in Lost Funding for the Office of Addiction Services and Supports, Impacting Recovery Programs and Treatment for Individuals Struggling With Substance Abuse

$27 Million in Cuts to the Office of Mental Health’s Crucial Work in Supporting New Yorkers With Mental Illness

Governor Kathy Hochul today shared a breakdown of the Trump administration’s sweeping federal cuts to New York State’s health programs, and how these cuts to health funding will affect New Yorkers.  The amount of funding lost will have a devastating impact statewide on programs that ensure the safety and well-being of people in New York, gutting over $360 million in financial resources toward mental health and addiction services, and health departments across the State.

“Slashing funding for public health, suicide prevention and addiction services is just plain cruel, and it's going to hurt everyday New Yorkers most,” Governor Hochul said.  “Here's the sad truth: there is no State in the nation that has the resources to backfill these sweeping cuts.  It's up to New York's elected officials who serve in the House majority to stand up and fight back.”

New York State Department of Health Commissioner Dr. James McDonald said, “It is disappointing these grants were terminated so impulsively without any advance notice and without consideration for the people we serve.  We were poorly prepared as a nation for the last pandemic.  I see the same pattern occurring now, where decisions are made without consideration for the public’s health and well-being.  These grants were preparing us to be healthier for the next pandemic.  These investments allowed New York to develop strategies that prevent chronic disease, improve nutrition and find problems before they started.”

Office of Addiction Services and Supports Commissioner Dr. Chinazo Cunningham said, “These sweeping federal cuts to health and human services threaten critical addiction funding streams that support prevention, harm reduction, treatment, and recovery services, putting lives at risk and straining the providers working tirelessly on the frontlines of this public health crisis.  OASAS remains committed to protecting and expanding access to life-saving services, and will work to mitigate the damage caused by these harmful cuts.”

Office of Mental Health Commissioner Dr. Ann Sullivan said, “For many years, the federal government has been a trusted and valued partner in efforts to provide critical mental health services and supports to New Yorkers, many living in traditionally marginalized communities and under difficult socioeconomic conditions.  These drastic cuts will likely slow, and in some instances, halt the fantastic progress our federally funded programs have made and continue to make across our state.  We have come too far to reverse course on mental health, which is why our federal legislators owe it to New York to challenge these cuts however possible.”

Federal Cuts by the Numbers:

Department of Health

DOH expects to lose over $300 million in funding for organizations across the State.

  • This funding supports many activities that are core to public health functioning, including virus surveillance, outbreak response, electronic data exchange, public dashboards, infection prevention activities in hospitals and nursing homes, laboratory reporting, program operations, and support to local health departments.  The backbone of the State’s public health infrastructure will be weakened significantly due to reduced virus surveillance and reporting systems that can no longer provide communities and families with real-time information on developing outbreaks, laboratory support and testing, data collection and analysis, public-facing dashboards, data and analytics.
  • Losing this funding will shutter multiple areas of work that are largely seen as foundational components of the Department’s response to emerging infectious diseases.  These cuts will also eliminate the Centers for Disease Control (CDC) and Prevention’s COVID-19 Health Disparities Grant, which funded 135 subcontractors to support community-based work addressing health disparities in New York, such as mental health, maternal and infant health, and food security.

Office of Addiction Services and Supports

OASAS expects to lose $40 million total in funding, which will result in significant cuts to addiction and prevention services, treatment supports and access to resources for individuals struggling with substance use.  This work includes, but is not limited to:

  • Transitional housing to help provide short-term housing and case management for individuals leaving OASAS residential treatment or correctional facilities who cannot otherwise access permanent housing.
  • Support for programs, access to treatment, recovery, and other basic services that keep people connected to care in their communities.
  • Expansion of outpatient clinics to offer medication for addiction treatment and to purchase and outfit mobile medication units to bring services where they are needed.
  • Administering and implementing Screening, Brief Intervention, and Referral to Treatment (SBIRT) which is a comprehensive public health approach to identify those at risk of developing substance use disorders and deliver early intervention and treatment services to individuals who exhibit habits of risky use of alcohol and other substances.

Office of Mental Health

OMH expects to lose $27 million total in funding for programs and services for individuals experiencing mental health and/or substance use needs.  These programs were intended to allow individuals in need of care to remain in their homes, connected to their natural support systems during treatment.  The loss of this funding will result in an increased reliance on emergency services and hospital-based care with fewer community resources and supports for our most vulnerable New Yorkers, including:

  • Crisis Stabilization and Crisis Residence Programs to provide urgent treatment to individuals experiencing an acute mental health and/or substance use crisis, and a safe place for the stabilization of psychiatric symptoms and support for children and adults.
  • Adult Assertive Community Treatment Teams (ACT) serving individuals with serious mental illness who are in danger of losing their housing/becoming homeless, are homeless, and/or have histories of involvement with the criminal justice system, and Children and Youth Assertive Community Treatment Teams (ACT) for youth who are returning home from inpatient settings or residential services, at risk of entering such settings, or have not adequately engaged or responded to treatment in more traditional community-based services.
  • Grants to expand and improve upon the mobile crisis services statewide, including 9-8-8 crisis call centers.  These call centers have relied on this funding to ensure they have capacity to connect callers experiencing emotional distress to the compassionate care of trained counselors.

USDOL Issues Comprehensive Employer Guidance on Long COVID

The United States Department of Labor (USDOL) has issued a comprehensive set of resources that can be accessed below for employers on dealing with Long COVID.

Supporting Employees with Long COVID: A Guide for Employers

The “Supporting Employees with Long COVID” guide from the USDOL-funded Employer Assistance and Resource Network on Disability Inclusion (EARN) and Job Accommodation Network (JAN) addresses the basics of Long COVID, including its intersection with mental health, and common workplace supports for different symptoms.  It also explores employers’ responsibilities to provide reasonable accommodations and answers frequently asked questions about Long COVID and employment, including inquiries related to telework and leave.

Download the guide

Accommodation and Compliance: Long COVID

The Long COVID Accommodation and Compliance webpage from the USDOL-funded Job Accommodation Network (JAN) helps employers and employees understand strategies for supporting workers with Long COVID.  Topics include Long COVID in the context of disability under the Americans with Disabilities Act (ADA), specific accommodation ideas based on limitations or work-related functions, common situations and solutions, and questions to consider when identifying effective accommodations for employees with Long COVID.  Find this and other Long COVID resources from JAN, below:

Long COVID, Disability and Underserved Communities: Recommendations for Employers

The research-to-practice brief “Long COVID, Disability and Underserved Communities” synthesizes an extensive review of documents, literature and data sources, conducted by the USDOL-funded Employer Assistance and Resource Network on Disability Inclusion (EARN) on the impact of Long COVID on employment, with a focus on demographic differences.  It also outlines recommended actions organizations can take to create a supportive and inclusive workplace culture for people with Long COVID, especially those with disabilities who belong to other historically underserved groups.

Read the brief

Long COVID and Disability Accommodations in the Workplace

The policy brief “Long COVID and Disability Accommodations in the Workplace” explores Long COVID’s impact on the workforce and provides examples of policy actions different states are taking to help affected people remain at work or return when ready.  It was developed by the National Conference of State Legislatures (NCSL) as part of its involvement in USDOL’s State Exchange on Employment and Disability (SEED) initiative.

Download the policy brief

Understanding and Addressing the Workplace Challenges Related to Long COVID

The report “Understanding and Addressing the Workplace Challenges Related to Long COVID” summarizes key themes and takeaways from an ePolicyWorks national online dialogue through which members of the public were invited to share their experiences and insights regarding workplace challenges posed by Long COVID.  The dialogue took place during summer 2022 and was hosted by USDOL and its agencies in collaboration with the Centers for Disease Control and Prevention and the U.S. Surgeon General.

Download the report

Working with Long COVID

The USDOL-published “Working with Long COVID” fact sheet shares strategies for supporting workers with Long COVID, including accommodations for common symptoms and resources for further guidance and assistance with specific situations.

Download the fact sheet

COVID-19: Long-Term Symptoms

This USDOL motion graphic informs workers with Long COVID that they may be entitled to temporary or long-term supports to help them stay on the job or return to work when ready, and shares where they can find related assistance.

Watch the motion graphic

A Personal Story of Long COVID and Disability Disclosure

In the podcast “A Personal Story of Long COVID and Disability Disclosure,” Pam Bingham, senior program manager for Intuit’s Diversity, Equity and Inclusion in Tech team, shares her personal experience of navigating Long COVID symptoms at work.  The segment was produced by the USDOL-funded Partnership on Employment and Accessible Technology (PEAT) as part of its ongoing “Future of Work” podcast series.

Listen to the podcast

HHS OIG Issues Annual Report on State MFCUs

Per the notice below, the Office of the Inspector General (OIG) of the United States Department of Health and Human Services (HHS) has issued its annual report on the performance of state Medicaid Fraud Control Units (MFCUs).

Medicaid Fraud Control Units Fiscal Year 2023 Annual Report (OEI-09-24-00200) 

Medicaid Fraud Control Units (MFCUs) investigate and prosecute Medicaid provider fraud and patient abuse or neglect. OIG is the Federal agency that oversees and annually approves federal funding for MFCUs through a recertification process. This new report analyzed the statistical data on annual case outcomes—such as convictions, civil settlements and judgments, and recoveries—that the 53 MFCUs submitted for Fiscal Year 2023.  New York data is as follows:

Outcomes

  • Investigations1 - 556
  • Indicted/Charged - 9
  • Convictions - 8
  • Civil Settlements/Judgments - 28
  • Recoveries2 - $73,204,518

Resources

  • MFCU Expenditures3 - $55,964,293
  • Staff on Board4 - 257

1Investigations are defined as the total number of open investigations at the end of the fiscal year.

2Recoveries are defined as the amount of money that defendants are required to pay as a result of a settlement, judgment, or prefiling settlement in criminal and civil cases and may not reflect actual collections.  Recoveries may involve cases that include participation by other Federal and State agencies.

3MFCU and Medicaid Expenditures include both State and Federal expenditures.

4Staff on Board is defined as the total number of staff employed by the Unit at the end of the fiscal year.

Read the Full Report

View the Statistical Chart

Engage with the Interactive Map

GAO Issues Report on Medicaid Managed Care Service Denials and Appeal Outcomes

The United States Government Accountability Office (GAO) has issued a report on federal use of state data on Medicaid managed care service denials and appeal outcomes.  GAO found that federal oversight is limited because it doesn't require states to report on Medicaid managed care service denials or appeal outcomes and there has not been much progress on plans to analyze and make the data publicly available.  To read the GAO report on federal use of state data on Medicaid managed care service denials and appeal outcomes, use the first link below.  To read GAO highlights of the report on federal use of state data on Medicaid managed care service denials and appeal outcomes, use the second link below.
https://www.gao.gov/assets/d24106627.pdf  (GAO report on federal use of state data on Medicaid managed care service denials and appeal outcomes)
https://www.gao.gov/assets/d24106627_high.pdf  (GAO highlights on federal use of state data on Medicaid managed care service denials and appeal outcomes)

CMS Issues Latest Medicare Regulatory Activities Update

The Centers for Medicare and Medicaid Services (CMS) has issued its latest update on its regulatory activities in the Medicare program.  While dentistry is only minimally connected to the Medicare program, Medicare drives the majority of health care policies and insurance reimbursement policies throughout the country.  Therefore, it always pays to keep a close eye on what CMS is doing in Medicare.  To read the latest CMS update on its regulatory activities in Medicare, use the link below.
https://www.cms.gov/training-education/medicare-learning-network/newsletter/2024-03-14-mlnc